RURAL DEVELOPMENT AND standards of the rural people, by deploying an PANCHAYAT RAJ DEPARTMENT efficient delivery mechanism to provide adequate quality services and essential POLICY NOTE 2011-2012 minimum needs.

1. INTRODUCTION The primary objective of the Government is the provision of basic infrastructure facilities “The best, quickest and most efficient and social services in the rural areas and way is to build up from the bottom. Every assistance to the individual families and Self village has to become a self-sufficient republic. Help Groups, living below the poverty line. This does not require brave resolutions. It Elimination of poverty and delivery of high requires brave, corporate, intelligent work” quality services are the basic premises upon which the planning of Rural Development is -Mahatma Gandhi based and concerted efforts of this Government have improved the living standards and set the being a welfare State, the benchmark for the quality of rural lives. purposeful endeavours of the Government are aimed at the Social, Economic and Political So far, Rural Development planning to upliftment of the people in the rural areas. accomplish the above objectives, was done at Rural Development aims at improving the rural the Panchayat level, which are the basic lives with the participation of the rural masses. structural units of development process. But, The concept of Rural Development targets the rural people consider that the planning process Social and Economic development of the rural should be done at the habitation level for areas. Rural Development in Tamil Nadu is fulfilling all their basic needs. To fulfill the concerned with the Economic Growth, Social people’s expectation, this Government is Justice and Improvement in the living committed to take up the Planning and

1 2 Implementation of the rural development income rural masses. For the first time in the schemes at the level of habitation. Out of country, this Government proposes to 12,620 Village Panchayats in the State, 96 introduce a free housing scheme to provide Village Panchayats are merged with the houses of 300 sq.ft. each to the eligible rural Municipalities / Corporations. As such there are masses and these free dwelling units shall 12,524 Village Panchayats in the State, with improve the welfare and livelihoods of the 79,394 habitations and only a micro level people living in the rural areas. Cost effective, planning at habitation level shall pave the way fast track technologies and Green for reducing the rural-urban divide. Further, technologies like Solar Home Lighting Systems the rate of increase in the percentage of will be used in the construction of the houses. urbanization of rural Tamil Nadu over the past decade indicates a blatant migration of people Reduction of Poverty has been of to the urban and semi - urban areas and this paramount concern in the independent . can be checked only if the amenities available Basic human needs such as water, food, in urban areas are provided in the rural areas. clothing, shelter, health care and education This Government proposes to introduce a new have not been available at socially acceptable scheme where the planning will be taken to the levels. Affordability of the rural poor was the habitation level and the requirements of the prime question, which has to be supplemented habitations shall be addressed on felt-need by the Government to ensure the basic basis. This will be a paradigm shift in rural minimum needs. Though the Government, both planning and implementation. The new scheme Centre and State, introduced various schemes will be called as Tamil Nadu Village Habitation to reduce the poverty levels, Mahatma Gandhi Improvement Scheme (THAI) National Rural Employment Guarantee Act was enacted as a law in the Parliament in 2005 to Affordable housing has been a critical guarantee a minimum of 100 days manual issue of great challenge for the homeless, low-

3 4 labour to the rural people which has played a the Panchayats to play a dynamic role in the pivotal role in addressing the rural poverty. decision-making process.

This Government enjoys the distinction of Energy is the key input to drive and drafting and legislating the Tamil Nadu improve the life cycle. The consumption of Panchayats Act, 1994 and setting ‘local energy is directly proportional to the progress governance’ in Tamil Nadu in motion. The of mankind. However, with ever-growing Panchayats were devolved with greater powers population, improvement in the living and responsibilities to combine Social Justice standards and industrialization, the global with effective Local Governance. The demand for the energy has raised manifold in Government paved the way for the political the recent years which has driven us to seek empowerment of the local bodies as self- for alternate energy sources and naturally, the administering viable democratic units and is only effective response is to go in for natural, committed to accelerate, widen and deepen the clean and renewable energy which can be process of empowerment so that these derived from a source that is replaced rapidly 'institutions of self government' evolve into by natural process but is not subject to 'principal authorities' for planning and depletion. As a measure to reduce the power implementation. As the tenure of the elected consumption and also the maintenance cost, local bodies will be over in October 24, 2011, this Government proposes to initiate and install this Government shall conduct the elections to solar powered street lights to replace the the rural and urban local bodies and safeguard existing electricity-powered illumination and the principles of local self-governance. This solar powered home lighting systems in the Government shall also constitute a High Level Green Houses. Committee for devolution of increased powers and functions to the local bodies and empower

5 6 Sanitation is the hygienic means of Hence, it will be of utmost priority of this promoting health through prevention of human Government to provide the schools with contact with hazards of waste. According to adequate infrastructure to facilitate better the World Health Organization, the term academic environment for the bright future of sanitation generally refers to the provision of the young children. facilities and services for the safe disposal of human urine and faeces. Inadequate sanitation This Government realises and is a major cause of disease and improving appreciates the significance of Information sanitation shall have significant beneficial Technology in the modern world, the need for impact on the health, both in household and greater exposure to the wide variety of areas of across community. Sanitation also refers to Information Technology and the importance of maintenance of hygienic conditions through computers for a speedy and qualitative service mechanism for collection of garbage transaction within the Government and disposal of wastewater. This Government departments and with other agencies. Hence, is committed to provide adequate access to this Government will confirm the availability of safe drinking water sources and sanitation computers at all levels, both in rural local services, individual and public sanitation bodies and department offices, with facilities. All the integrated sanitary complexes connectivity through Internet. for women, which have been driven to the Contrary to the claims made by different state of disuse, will be repaired and put to use. sectors, it was this Government, which formed

Education is the most fundamental the Tamil Nadu Corporation for Development of building block for human development and Women Ltd., (TNCDW) with the object of poverty reduction and schools are the edifices overall development of women including where the children undergo the formative effect education, upgradation of skills etc., to improve on their mind, character and physical ability. the quality of life of women. This Government

7 8 strived hard to ensure the gender equality international funding agencies such as Asian within the frame work of a democratic polity. Development Bank, World Bank etc., to secure The TNCDW has today evolved into a massive adequate financial resources for the permanent movement and has substantially empowered resettlement of not only the Tsunami victims the women folk, especially in rural areas. but also the people living in the coastal areas. These schemes shall be successfully completed This Government launched ‘Pudhu during 2011-2012. vazhvu’ project in November 2005, which was designed as a community driven development The Department of Rural Development project, with main focus on the most vulnerable and Panchayat Raj is responsible for the layer of society i.e., poorest of poor. This implementation of various rural welfare Government is committed to expand the schemes and also assists Panchayat Raj project to other areas as well and secured Institutions to discharge their duties and additional financing. functions as effective Local Self Government entities. This Government is committed to When an unprecedented Tsunami wave provide all the basic amenities in the rural abruptly hit the coastal stretches of Tamil Nadu areas at the level of habitation, promote th on 26 December 2004 and caused extensive sanitation, reduce poverty, conserve the havoc, wreaking heavy toll on the lives and natural resources and reduce the urban-rural incalculable damage to the properties, this divide and ensure a prosperous rural Government rose up to the occasion, mobilized Tamil Nadu. all the resources and swiftly rehabilitated and resettled the affected. The strenuous efforts taken by the Government of Tamil Nadu came in for recognition by all over the world. This Government also initiated dialogues with

9 10 2. PANCHAYAT RAJ desired candidate on the palm leaf (Panai olai) and drop it in the pot. At the end of the The history of the local self-governance process, the leaves were taken out of the pot in Tamil Nadu can be traced back to the stone and counted candidate-wise and whoever got edicts and carvings in Sri Sundaravaradhar the highest number of votes was selected as Temple of Uthiramerur in Kancheepuram the member of the village council. It is also district, which bear evidence to the well interesting to note that eligibility criteria and established local self-governance during the norms of disqualification had been prescribed Chola imperial period. It is inscribed on the for those who contested for the Village Council. walls of the village assembly made of granite slabs that the village had a perfect electoral With the advent of the British rule, the system and a written constitution prescribing system of local self-governance slowly the mode of election. This inscription can be disintegrated and the industrialization that dated around 920 AD in the reign of Parantaka followed resulted in massive unemployment. Chola, which demonstrates the perfect electoral This eventually shattered the basic structure of system that existed in ancient India. It was a the local self- governance. However, the British system of democracy in monarchy where the presented a modified concept of local self- members of the Village Council were elected governance to suit the British colonial rule. through a process of secret ballot called ‘Kuda Olai Murai’ and these Councils functioned as The District Board Fund was self-contained economic and administrative conceptualized in 1854, and the Madras Local entities. This system of secret ballot is the Fund Act 1871 was later enacted by Governor forerunner for today’s electoral system. A huge Mayo. Local Fund Boards were set up in their mud pot (Kudam) was placed at an important respective areas and were devolved with location of the village, which served as a ballot certain functions. Madras Local Board Act, 1884 box. The voters had to write the name of the was the outcome of the Lord Ripon’s Local Self

11 12 Government Resolution of 1882, which ushered some Village Panchayats was set up in in the 3 tier system of Local Boards namely in 1951. The Government of India launched District Boards, Taluk Boards and Union of Community Development and National villages. In 1920, the Government enacted two Extension Service Scheme in 1952 for Area legislations, 1) The Madras Local Boards Act Development through “Development Blocks”. (replacing 1884 Act) and 2) Village Panchayat The Balwantrai Mehta Committee Act. In 1930, Madras Village Panchayat Act was appointed by Government of India, submitted repealed and Village Panchayats came under its report in January 1957 and recommended the purview of Madras Local Boards Act 1920 the establishment of the democratic by an amendment to the Act in 1930. Though decentralization, which finally came to be local Self-Governance was accentuated in all known as Panchayat Raj. Some of the main the above proclamations, the Government recommendations of the Committee were: continued to exercise absolute control over the

Local bodies through Inspector of Municipalities 1. Establishment of 3 tier Panchayat Raj and Local Boards. System which should be organically linked through a device of indirect elections. In the post-independence era, the 2. Village Panchayats should be constituted Government enacted Madras Village Panchayat by the directly elected representatives Act 1950 for devolving greater powers to whereas the Panchayat Samiti and Zilla Panchayats. Article 40 in Part-IV of the Parishad should be constituted with the Constitution provided for the organization and indirectly elected members. endowment of powers to the Panchayats. The 3. All the Planning and Development activities District Boards looked after Health and should be entrusted to the three tier Local Education and the Panchayats undertook Bodies. various activities to fulfill the basic needs of the people. A model Panchayat Union comprising

13 14 4. Panchayat Samiti should be the executive (iii) Creation of District Development Council body, whereas the Zilla Parishad should to play an advisory role play advisory role, coordinating and (iv) Entrustment of development and social supervising the functions. welfare functions to Village Panchayats 5. District Collector should be the Chairman and Panchayat Unions. However, the of Zilla Parishad. enactments deleted certain powers of 6. There should be a genuine transfer of Village Panchayats like judicial powers. powers and responsibilities to these Though Balwantrai Mehta Committee had democratic bodies. recommended the setting up of 3 tier 7. Sufficient resources should be devolved to Panchayats with Zilla Parishad at District level, these bodies to enable them to discharge the Madras Government set up District their functions. Development Council at District level, which 8. A system should be evolved to effect ultimately led to 2 tier system with Village further devolution of powers and Panchayat and Panchayat Union. The District functions, in future. Boards were abolished and the Panchayat

The Government of Madras was not in Unions were the successor body to the District total agreement with the recommendations of Boards. The District Collectors chaired the Balwantrai Committee and enacted Madras District Development Councils (DDC) with Panchayats Act, 1958 and Madras District representatives from rural and urban local Development Council Act, 1958. The major bodies, MLAs, MPs and others as members and features of the enactments were: thus, the Panchayat Unions started playing a

(i) Creation of Panchayat Unions pivotal role in the developmental process. co-terminus with Development Blocks The 73 rd Constitutional Amendment Act (ii) Abolition of District Boards was passed and it came into effect from April

15 16 1993. Section 243G of the Constitution Legislature, setting up of the State Finance provided for the scope of devolution of powers Commission once in 5 years to review and and functions to the Panchayat Raj Institutions. recommend the fiscal status of Panchayats, 29 items were specifically listed out in the XI establishment of State Election Commission, Schedule of the Constitution and 74th etc., Amendment provided for formation of District The Government of Tamil Nadu legislated Planning Committee. The State Governments Tamil Nadu Panchayats Act, 1994, which came were required to carry out amendments in their into force on 22.4.1994. The 1994 Act brought respective Panchayat Acts and enact new in a number of changes in the Tamil Nadu legislations. Panchayat Raj structure:

The 73 rd amendment added a new • Three Tier System came into existence in dimension to the existence of local Tamil Nadu self-governance and provided scope for Grama • “Panchayat” was a generic term for all Sabha in villages, constitution of three tier three tiers and the Town Panchayats system of Panchayats, direct elections of were brought under Nagarpalika Act members to the Panchayats, reservation of • Members of three tiers of rural Local seats to SCs/STs in proportion to their Bodies and Village Panchayat Presidents population, reservation of 1/3 rd seats for were directly elected whereas the women, reservation of seats to the Chairpersons of Panchayat Union Chairpersons (i.e. Chairman, President) on Councils and District Panchayats were rotation basis, fixing of 5 year tenure for elected from among the elected ward Panchayats, holding of elections within a period members. of six months in the event of supersession of any Panchayat, devolution of powers and responsibilities to the Panchayats by the State

17 18 • All three tiers of Panchayats are 2.1 Grama Sabha independent of each other and the Village Panchayat Presidents are not All registered voters of a Village members in the Panchayat Union Panchayat constitute Grama Sabha, which is Council. provided with specific powers and functions. • Reservation of seats and offices for SCs/STs in proportion to their population Grama Sabha shall statutorily be has been made and 1/3 rd of the total conducted in such a way that the intervening number of seats and offices is reserved period between two Grama Sabhas shall not for women. exceed a period of 6 months. However, the • The rotation of offices in all three tiers Government of Tamil Nadu has made it will be once in 10 years. mandatory to convene Grama Sabha, a th • Election shall be conducted within 6 minimum number of 4 times i.e. on 26 st th nd months from the date of occurrence of January, 1 May, 15 August and 2 October any vacancy and the tenure is fixed as 5 of every calendar year. Besides, the Grama years for all the members and Sabha can be convened as and when the Chairpersons. necessity arises. • Tamil Nadu State Election Commission The Grama Sabha performs the following was constituted. functions: • State Finance Commission is being

constituted quinquennially. 1. Approves the Village Development Plan. • District Planning Committee has been 2. Approves the Village Panchayat Budget. constituted to consolidate the 3. Approves the Audit Report. Development Plans of Panchayats and 4. Reviews the progress of scheme Municipalities in the districts. implementation.

19 20 5. Approves the list of beneficiaries, The Tamil Nadu State Election intended to be benefitted under various Commissioner and other administrative staff schemes. are appointed as per the sub-section (3) of 6. Promotes communal and social harmony Section 239 of the Tamil Nadu Panchayats Act, among various groups of people. 1994 and the State Election Commissioner shall hold office for a term of 2 years and shall be 2.2 State Election Commission eligible for re-appointment for two successive terms provided no person shall hold the office Setting up of State Election Commission of Tamil Nadu State Election Commissioner for rd is mandated by 73 Amendment to the more than 6 years in aggregate. While the Constitution of India and Section 239 of the conditions of service and the tenure of office of Tamil Nadu Panchayats Act, 1994. The Tamil the State Election Commissioner shall be as Nadu State Election Commission was set up as Governor may by rules determine, the State an independent and autonomous constitutional Election Commissioner shall not be removed authority in 1994 in order to strengthen the from his office except in like manner and on process of decentralization and democracy. The the like grounds as a Judge of High Court and Superintendence, Direction and Control of the the conditions of service shall not be varied to preparation of electoral rolls and the Conduct of the disadvantage of his appointment. all elections to the Village Panchayats, Panchayat Union Councils and District 2.3 Elections Panchayats are vested with the Tamil Nadu State Election Commission, consisting of a The tenure of the existing rural and Tamil Nadu State Election Commissioner. urban local bodies is due to expire and the next ordinary elections will be conducted in October 2011.

21 22 The following table details the number of to SC/ST. Also, not less than 1/3 rd (including seats and offices in the three tier of Panchayats the number of seats reserved for women of for which elections were held in October 2006. SC/ST) of the total number of seats shall be

1. Village Panchayat Wards 40,879 reserved for women. The State may legislate 2. Village Panchayat Ward Members 97,458 laws on the reservation of offices of 3. Panchayat Union Wards 6,570 Chairperson and these provisions have been 4. District Panchayat Wards 656 5. Village Panchayat Presidents 12,618 covered in Tamil Nadu Panchayats Act, 1994 in 6. Panchayat Union Chairpersons 385 Sections 11, 20, 32 and 57, further 7. District Panchayat Chairpersons 29 supplemented by Tamil Nadu Panchayats 2.4 Reservation of seats and offices and (Reservation of Seats and Rotation of Reserved rotation Seats) Rules, 1995.

Seats shall be reserved for Scheduled Reservation of Offices and Seats for Women, SCs and STs for Local Body Election 2011 Castes/Scheduled Tribes in every Panchayat S and the number of seats reserved shall bear, as Category Total l. Reserved for Reserved for Reserved of Reser No.of N Women SCs for STs nearly as may be, the same proportion to the vation offices o /seats total number of seats to be filled by direct 1 District 31 11 35% 7 24% 0 0% Panchayat election in that Panchayat as the population of Chair- Persons Scheduled Castes in that Panchayat area or of 2 Panchayat 385 140 36% 87 23% 4 1% Union the Scheduled Tribes in that Panchayat area Council Chair bears to the total population of that area and Persons 3 Village 12,524 4,289 34% 3,136 25% 156 1% such seats may be allotted by rotation to Panchayat Presidents 4 District 655 228 35% 154 24% 8 1% different constituencies in a Panchayat Panchayat Ward according to Article 243D of the Constitution of Members 5 Panchayat 6,471 2,286 35% 1,526 24% 64 1% India. It is also mandated that not less than Union Ward Members rd 1/3 of the total number of seats reserved as 6 Village 99,333 33,121 33% 25,360 26% 1039 1% Panchayat above, shall be reserved for women belonging Ward Members

23 24 The Government has provided 903 2.5 State Finance Commission temporary posts for the election purpose and also allowed Rs.9.38 crores for the successful Constitution of the State Finance rd conduct of forthcoming Local Body Elections. Commission is mandated by 73 Amendment The staff sanctioned by the Government for the to the Constitution of India and section 198 of conduct of elections to the Local Bodies are the Tamil Nadu Panchayats Act 1994. The first detailed below: State Finance Commission was constituted in 1994 and the terms of reference were: Sl. Name of the Post No. of

No. (a) Directorate of Rural Posts Development and Panchayat 1. Distribution of the net proceeds of taxes, Raj duties, tolls and fees leviable by the 1. Assistant Director 1 Government, between the State and the 2. Block Development Officer 1 Panchayat. 3. Assistant 3 2. Determination of taxes, duties, tolls and 4. Computer Operator 1 Total 6 fees, which may be assigned to the Panchayats. (b) Collectorate (Development wing) 3. Grants to the Panchayats from the 1. Personal Assistant (Elections) 31 consolidated fund of the State. 2. Block Development Officer 32 3. Assistant 32 4. Measures needed to improve the financial 4. Computer Operator 32 position of the Panchayat. Total 127 (c) Blocks The Fourth State Finance Commission 1. Assistant 385 was set up in December 2009 vide 2. Computer Operator 385 G.O.(Ms).No.549, Finance Department, dated Total 770 1.12.2009 to study the financial position of the Grand Total 903 Village Panchayats, Panchayat Union Councils,

25 26 District Panchayats, Town Panchayats, For the year 2011-12, the tentative Municipalities and Municipal Corporations. The allocation of State Finance Commission Grant Commission is expected to make its report will be Rs.3,053 crores. available by September 2011, covering the period of 5 years commencing on 1 st April 2.6 District Planning Committee 2012. The District Planning Committee is The 2011 Provisional census figures constituted for every district under section 241 reveal that the ratio of the population in rural of the Tamil Nadu Panchayats Act, 1994. and urban areas in Tamil Nadu is 52:48 and District Collector is the Chairman and District hence, there is a claim that the existing sharing Panchayat Chairperson is the Vice Chairman of pattern of the State revenue between the rural the committee. MPs, MLAs, representatives of and urban local bodies which is at 58:42, local bodies are appointed as members subject should be altered to the advantage of urban to the norms and ceiling prescribed. The local bodies. However, the Department of Rural functions of the District Planning Committee Development and Panchayat Raj has made out are: the case before the Fourth State Finance 1. Collection, Compilation and Updation of Commission on the need to continue the information on the natural resources of existing sharing pattern due to the vast the district to create a comprehensive differences in the living standards of the people database for decentralised planning. between rural and urban areas; failure to 2. Identification of priority needs improve the living standards of the rural people 3. Determination of policies, programmes shall result in more migration to the urban and priorities for development of the areas that will indirectly cast a heavy financial district. burden on the urban Local Bodies.

27 28 4. Consolidating the plans of rural local the Village Panchayats to perform the following bodies and urban local bodies for the functions. preparation of district plan. This • Operation & maintenance of water consolidated plan facilitates the State supply, street lights and sanitation Planning Commission in the preparation of

State Plan. • Payment of electricity charges for 5. Monitoring and Evaluation of various water supply and street lights. developmental programmes in the district. A sum of Rs.333.00 crores has been 6. Encouraging the participation of Voluntary allocated by Government of India for the year organizations in the development process. 2011-12 under 13 th Central Finance 7. Advising the State Government with Commission Basic Grant. The State regard to the implementation of State Government has released Rs.166.50 crores as Schemes. first installment vide G.O. Ms. No. 43, RD & PR 8. Any other function that may be entrusted Department, dated 20.7.2011 in anticipation of by the State Government. release of funds from Government of India. Performance Grant of Rs. 1067.50 crores has 2.7 Central Finance Commission been allotted by the Government of India for the Panchayat Raj Institutions in Tamil Nadu The Government of India have allotted a for four years from 2011-12 onwards. th sum of Rs. 2016.30 crores under 13 Central

Finance Commission Basic grant for the 5 year 2.8 Village Panchayat period from 2010-11 to 2014-15. The basic grant of Rs. 287.10 crores has been received The Village Panchayat is constituted for for the year 2010-11. The grants are allotted to each Panchayat Village consisting of such number of elected members, with effect from

29 30 such date as may be specified in the The Village Panchayat shall constitute the notification of the Inspector of Panchayats. following Committees: The Government may by notification, classify Village Panchayats into various grades for the 1. Appointment Committee purpose of effective administration. The total 2. Development Committee number of members of the Village Panchayats 3. Agriculture and Water supply (exclusive of its President) shall be notified by Committee the Inspector of Panchayats in accordance with 4. Works Committee such scale as may be prescribed with reference 5. Temporary Committee to the population of the Village Panchayat According to Section 110 of Tamil Nadu concerned as per the latest published census. Panchayats Act, 1994, it shall be the duty of Every Village Panchayats unless sooner the Village Panchayats for carrying out the dissolved shall continue for 5 years from the requirements of the Village Panchayats in the date appointed for its first meeting after each following matters: ordinary election. However, Special Officers may be appointed to exercise their powers and 1. Construction, repair and maintenance of discharge the functions of the Village all village roads, (other than those Panchayats in certain circumstances.

classified by Highways and Panchayat

Union roads), all bridges, culverts, road- The number of Village Panchayats in dams and cause-ways. each district is given in the Annexure. 2. Street lights in public places.

3. Construction of drains and disposal of The Village Panchayat President is the drainage. executive authority of the Village Panchayat. 4. Cleaning of streets and improvement of sanitary conditions.

31 32 5. Provision of public latrine. 2.8.1.2 Non-Tax Revenue 6. Burial and burning grounds. 7. Supply of drinking water. 1. Licensing fee for building plan and 8. Other duties that the Government, may layout approval by notification, impose. 2. Fees and charges on D&O trades, 3. Market fee, Section 111 of Tamil Nadu Panchayats 4. Water charges, Act, 1994, provides for the Village Panchayats 5. Fee on cart stand to make provisions for carrying out the 6. Social Forestry auctions requirements in respect of plantation, lighting, 7. Fishery rentals markets, fairs & festivals, cart stand & cattle 8. 2-C patta fees sheds, slaughter houses, reading rooms, play 9. Income from market and fairs. grounds, etc., which are deemed to be the 10. Fees from ferries discretionary functions of the Village 11. Fines and penalties Panchayats subject to the limits of its resources. Avenues for mobilizing more revenue 2.8.1 Revenue from items such as Mobile towers erected in

The Village Panchayat is the only body, Panchayat land, OFC laid along Panchayat empowered to levy taxes including fees and roads, land categorization, etc., will be charges. The Village Panchayat levies the explored. A High Level Committee will be following taxes: constituted by the Government to suggest ways and means to augment resources of the 2.8.1.1 Tax Revenue Panchayats. 1. House tax 2. Profession tax 3. Advertisement tax

33 34 2.8.2 Assigned and shared Revenue the Village Panchayats on the basis of population. 5% out of the above 60% is The Village Panchayat is entitled to a designated as infrastructure gap filling portion of allocation from the pooled assigned fund. revenues of Surcharge on stamp duty and 3. Development Grants under various Entertainment Tax. Central and State Schemes.

2.8.3 Grant 2.9 Panchayat Union

1. Central Finance Commission Grant - As The Panchayat Union is co-terminus with far as Tamil Nadu is concerned, the the development block and the Panchayat entire Central Finance Commission union area is divided into territorial wards for allocation is given to the Village every five thousand population. The Panchayat Panchayats for maintenance of drinking Union ward members are directly elected from water and sanitation. territorial blocks and the Panchayat Union 2. State Finance Commission Grant – 60% chairman is elected indirectly by the ward of the 58% of the share given to the members. rural local bodies out of the earmarked 10% of the total State revenue, is due to Number of Village Number of the Village Panchayats, which is released Panchayats in Panchayat Panchayat Union on a monthly basis. A floor amount has Unions 10 and below 24 been set apart to meet Current 11-20 75 Consumption charges towards street 21-30 83 lights and drinking water supply which is 31-40 82 41-50 68 operated through a separate account. 51 and above 53 The remaining amount is distributed to Total 385

35 36 The number of Panchayat Unions in each entrust schemes, programmes and activities for district is given in the Annexure. economic development, for execution and implementation. The Block Development Officer (Block Panchayat) is the executive authority of the 2.9.1 Finance Panchayat Union. He is assisted by technical and administrative wings. According to 1. The Panchayat Union Council can not section 112 of the Tamil Nadu Panchayats Act, impose taxes. 1994, Panchayat Union Council performs the 2. The revenue of a Panchayat Union following important functions: consists of non-tax revenues, assigned/shared revenues such as a 1. Implementation of various Centrally portion of the pooled assigned revenue, sponsored and State Schemes. fees & charges, rentals, fines & penalties 2. Construction, repair and maintenance and Government grants such as State of Classified Panchayat Union Roads Finance Commission Grant, Grant for and bridges, culverts, road-dams and Maternity Centre, Grant for Dispensaries, causeways on such roads. Social Education Grant, Women & 3. Construction and maintenance of Children Welfare Grant, Local Irrigation Elementary and Middle Schools. Grant and Development Grants from 4. Preventive and remedial measures for Centre and State Schemes. any epidemic 3. State Finance Commission Grant – 32% 5. Fairs and festivals, classified by the of the 58% of the share given to the Panchayat Union Council. Rural Local Bodies out of the earmarked 6. Classified Panchayat Union Markets 10% of the total State revenue, is due to As per section 114 of the Tamil Nadu the Panchayat Unions, which is released Panchayats Act, 1994, the Government may on a monthly basis. A floor amount of

37 38 Rs.30 lakhs has been set apart for 4. Education uniform and equitable distribution. The 5. Health and Welfare including prohibition

remaining amount is distributed to the These Committees perform the functions Panchayat Unions on the basis of assigned to them specifically by the District population. Panchayat. The District Panchayat may constitute additional standing committees for 2.10 District Panchayat such purposes as it thinks fit. Each Standing

Committee shall elect its own Chairman from Section 24 of the Tamil Nadu Panchayats among its members who are elected members Act, 1994, provides for the constitution of of the District Panchayat. The Chairman of the District Panchayat for each revenue district. District Panchayat shall be ex-officio member in Each District Panchayat is divided into all the Standing Committees. territorial wards, each with 50,000 population approximately. The ward members are elected The functions of the District Panchayats are: directly, whereas the Chairperson is indirectly • Preparation of development plan for the elected from among the ward members. district A Secretary in the cadre of Assistant • Compilation of administration reports of Director from the Department of RD&PR is Village Panchayat and Panchayat Union appointed to each District Panchayat and is Councils in the district and preparation of assisted by the supporting staff. The District Annual Report for the District. Panchayat may constitute standing • Planning and review of Agricultural and Committees: Land Development, Animal Husbandry,

1. Food and agriculture Dairy, Poultry, Fisheries scheme and Rural 2. Industries and Labour Industries

3. Public Works

39 40 • Planning and review of rural housing minerals). During 2010-11, 1/3 rd of the total programme particularly housing for SC/ST. revenue was assigned to the rural local bodies

and the balance 2/3 rd was credited to the Fund • Identification of major water supply for priority schemes in rural areas. This schemes. Government has promised to find out the

2.10.1 Finance possibilities for the increase of resources to the Village Panchayats. Accordingly, as a first step, The District Panchayat has no taxation the ratio for release of funds to the PRIs and powers. The State Finance Commission Grant the Scheme Component is reversed under and Development Grants and in certain cases, Pooled Assigned Revenue. The Pooled income from their own properties like lands and Assigned Revenue for the year 2011-12 is buildings, constitute the chief source of income. rd arrived at Rs.532.42 crores. 2/3 of the State Finance Commission Grant – 8% of amount i.e. Rs.354.95 crores will be released the 58% of the share given to the Rural Local to the Village Panchayats and Panchayat Bodies out of the earmarked 10% of the total Unions in the ratio of 2:1.The balance 1/3rd State revenue is due to the District Panchayats, amount will be used for important development which is released on a monthly basis. works in rural areas.

2.11 Pooling of Assigned Revenue 2.12 Delimitation of Rural Local Bodies The Government of Tamil Nadu had Conversion of Multi Member Wards ordered the pooling of assigned revenues due into Single Member Wards to the rural Local Bodies from the proceeds of The existence of Multi Member Wards in surcharge on stamp duty and entertainment the Village Panchayats has posed difficulties in tax at the State Level and apportioning the the reservation of seats to SC/ST and Women same to the rural local bodies (except social members for the Village Panchayat Wards. The forestry receipts and income from mines and

41 42 rural voters also felt that the ballot paper was 2.13 Merger of Village Panchayats with confusing and difficulties were encountered by the nearby Municipalities/ Corporations the staff members at the time of counting of votes. Besides, since there is no clear The Government have issued orders demarcation of territory in a multi member merging 96 Village Panchayats with the nearby ward, there is no ownership among the Municipalities and Corporations as under:

members of a particular ward. Sl. Name of the No. of No. of No. of Total

Originally as per 1991 Census, there No District Blocks Panchayats Panchayats (4) covered to be to be + were 40,879 multi member wards with 97,458 merged merged (5) ward members in the Village Panchayats. with with Corporation Municipality Hence, in order to streamline the electoral (1) (2) (3) (4) (5) (6) process and demarcate the Village Panchayat 1. Kancheepuram 3 12 3 15 Wards with clear boundaries, it was proposed 2. Tiruvallur 3 13 0 13 3. Villupuram 1 0 5 5 to convert the multi member wards into single 4. Vellore 3 9 1 10 member wards. After the exercise for 5. 1 5 0 5 conversion of multi member wards into single 6. Tiruppur 1 8 0 8 7. Coimbatore 1 1 0 1 member wards as per 2001 Census, the 8. Tiruchirapalli 1 4 0 4 number of Village Panchayat wards has gone 9. Karur 1 0 1 1 10. Madurai 3 11 0 11 up to 99,333 and equal would be the number 11. Thoothukudi 1 5 0 5 of ward members. 12. Kanniyakumari 2 0 4 4 13. Pudukkkottai 1 0 1 1 The local body elections in October 2011 14. Namakkal 1 0 9 9 15. Krishnagiri 1 0 4 4 will be held for the Ward Members of Village Total 24 68 28 96 Panchayats with single member ward system only.

43 44 List of Village Panchayats merged with Municipalities / Corporations 1. Minjur Idayanchavadi

2. Sadayankuppa

S. District Name of the Block Name of the Name of m the No Panchayat 3. Kadapakkam Municip ality/Co 4. Theyyampakka rpo m ration in 5. Puzhal Mathoor which the Panchayat 6. Vadaperumpak merged 2. Tiruvallur kam Corpora Tion 1. Kundrathur Mugalivakkam 7. Soorappattu 2. Manapakkam 8. Kathirvedu

3. Kottivakkam 9. Puthakaram

4. Palavakkam 10 Nolambur

5. Neelankarai 11 Karampakkam Villivakkam 6. Injambakkam 12 Nerkundram 7. St.Thomas Karapakkam 13 Ramapuram 8. Mount Okkiam thuraipakkam 1. Valadhareddy 1. Kancheepuram 9. Madipakkam Chennai 2. Salamedu Villu 10 Jalladampettai Corpora 3. Kakuppam puram 11 Semmancheri Tion 3. Villupuram Koliyanoor Munici 4. Erumanamthan 12 Uthandi pality 13 Orikkai gal 14 Thenambakka Kancheep 5. Pappapattu Kanchipuram m uram 1. Ariyoor 15 Nathapettai Munici 2. Chitheri Pality 3. Vellore Konavattam 4. Alamelumangapur Vellore am Corpora 5. Virupatchipuram Tion 4. Vellore 6. Kaniampadi Palavanchathu 7. Idayanchathu 8. Viruthampattu Katpadi 9. Kankeyanallur 10 Tirupathur Tirup athur Tirupathur Munici pality

45 46

1. Gangapuram 1. Melamadai 2. Ellaipalayam Erode 2. Madurai East Uthankudi 5. Corpora Erode 3. Erode Villiarasampatti 3. Vandiyoor 4. Thindal Tion 4. Kannanenthal 5. Muthampalayam 5. Madurai West Naganakulam 1. Chittipalayam 6. Thirupalai Madurai 2. Mannarai 10. Madurai 7. Chinna Corpora 3. Thottipalayam Tion Tiruppur Anuppanadi 4. Andipalayam 6. Tiruppur Tiruppur Corpora 8. Chinthamani 5. Veerapandi Tiruparankun Tion 9. Iravathinallur 6. Murugampalayam dram 10. Pudukulam Bit 2 7. Neruperichal 11. Thiyagarajar 8. Muthunampalayam colony Coimbatore 1. Vilankuruchi Coimba 1. Sankaraperi Sarcar tore 7. Corpora 2. Thoothukudi -samakulam Thooth tion Rural 11. Thoothukudi Thoothukudi ukudi 3. Meelavittan Corpora 1. Papakurichi 4. Muthiapuram tion Tiruchirap 2. Ellakudi alli 5. Athimarapatti 8. Tiruchirapalli Tiruverumbur Keelkalkandarkottai Corpora 3. 1. Peruvilai Tion 4. 2. Rajakkamang Vadakku Nagarcoil Karur 1. Thanthoni Sanapiratti Karur alam soorankudi 9. Munici 12. Kanniyakumari Munici malai 3. Gandhipuram Pality Pality 4. Agasthees Kariyamanicka waram Puram Pudukkottai 1. Pudukkottai Pudukkkottai Pudu

13. kottai Munici pality

47 48 functional after the Local Body Elections in 1. Chinnamudalai October 2011. Patti

2. Mudalaipatti 2.15 Delimitation of Panchayat Union 3. Kosavampatti Nama Wards 4. Kondichettipatti 14. Namakkal Namakkal kkal 5. Periyapatti Munic ipality 6. Kavetipatti Consequent to the conversion of multi 7. Nallipalayam member wards into single member wards and 8. Ayyampalayam merger of 96 Village Panchayats with the urban 9. Thummankurichi local bodies, the ward boundaries of certain 1. Zuzuvadi Panchayat Unions required re-organisation, 2. Chennathur Hosur 15. Krishnagiri Hosur Municipal which has been completed. Elections will be 3. Mookandapalli ity 4. Avalapalli held to these Panchayat Union Wards as per the revised delimitation. The above Village Panchayats shall become part of the urban Local Bodies after 2.16 Delimitation of District Panchayat completion of ordinary elections in October Wards 2011. The formation of two new Districts

namely Tiruppur and Ariyalur Districts 2.14 Formation of two new Village necessitated the re-organisation of District Panchayats Pancahyat Wards in Coimbatore, Erode,

Two new Village Panchayats namely Tiruppur, and Ariyalur and the Perumathur and Indira Nagar have been merger of 96 Village Panchayats with the urban notified by the District Collector, Cuddalore in Local Bodies warranted the re-organisation of Kurinjipadi Panchayat Union, which will become some of the District Panchayat Wards in the

49 50 State. This delimitation exercise has now been each Village Panchayat President as completed and ordinary elections in October Honorarium, in recognition of their services. 2011 shall be held as per the revised The Government also proposes to delimitation. increase the sitting fee from Rs.50/- to

2.17 Formation of two District Panchayats Rs.100/- for the Village Panchayat Presidents and from Rs.25/- to Rs.50/- for the Village Consequent to the formation of two new Panchayat Ward Members. districts namely Tiruppur and Ariyalur, two new The total cost towards the above items is District Panchayats have to be formed. The two proposed to be met from the State Finance new District Panchayats will become functional Commission Grant. after completion of the Local Body Elections in

October 2011. 3. STATE SCHEMES

2.18 Honorarium and Allowances 3.1 Tamil Nadu Village Habitations Improvement (THAI) Scheme The Village Panchayat Presidents are the The Government’s endeavour to improve executive authority for the Village Panchayats the Quality of Life in rural areas, by providing and the Village Panchayats are saddled with necessary inputs like protected drinking water, more responsibilities than the other two tiers of sanitation, health facilities, quality education, Panchayats. Village Panchayat is primarily all weather roads, etc., is continuous, sustained responsible for the basic amenities and the and persistent. Hence, in order to ensure an day-to-day needs of the rural people. Hence, effective delivery mechanism, the strategy of as in the case of Kerala, Andhra Pradesh and Rural Development has mainly focused on Karnataka, this Government proposes to poverty alleviation, better livelihood disburse an amount of Rs.1,000 per month to

51 52 opportunities, provision of basic amenities and habitations also varies from district to district; infrastructure facilities, through various average number of habitations in a Village innovative programmes. But all these Panchayat in the Nilgiris district is 37 whereas strategies were evolved with “Village it is only 3 in Villupuram. Therefore, allocation Panchayat” as the basic structural and of equal amount to all the Village Panchayats, functional unit of planning. which have varied number of habitations will only lead to disparity in development, This Government is committed to take up disproportionate distribution of assets and the planning and implementation of the rural uneven progress. development schemes a step further i.e., to the level of habitation in the Village Panchayat. To overcome the bottlenecks of the Though, there are 12,524 Village Panchayats in unequal distribution of resources and to the State, there are 79,394 habitations and provide minimum basic infrastructure facilities only a micro level planning at habitation level to all the habitations, this Government shall pave the way for reducing the rural-urban proposes to introduce a flagship programme divide. Further, the rate of increase in the called Tamil Nadu Village Habitations percentage of urbanization of rural Tamil Nadu Improvement (THAI) Scheme. No other State over the past decade indicates a heavy in the Country is implementing such a massive migration of people to the urban and semi- Scheme and Tamil Nadu is the only State urban areas and this can be checked only when focusing on “Habitation” as the unit of the amenities available in rural areas are on development . par with urban and semi-urban areas. Equitable distribution of resources to all

With the number of 79,394 habitations in the habitations in a proportionate manner alone 12,524 Village Panchayats, there are about 7 shall mark ‘just & impartial development’ of the habitations on an average for each Village habitations and allay the disparities in Panchayat. However, the number of development. The introduction of THAI Scheme

53 54 shall be a paradigm shift in the approach Classification of Village Panchayats on the basis of Number of habitations towards the development process of rural Sl.No. Habitation range No.of Village Panchayats areas. 1 Below 5 6,241 2 5-15 5,434 There are 12,524 Village Panchayats in 3 16-25 637 4 Above 25 212 the State spread across the 31 districts (except Total 12,524

Chennai). As can be seen from the following Fund allocation Table, the population of Village Panchayats in Tamil Nadu widely varies with some Village There is a positive correlation between Panchayats having population even below 500 the population of a Village Panchayat and the while some others have population exceeding number of habitations within it. The following 10,000. table also exhibits the same facts. Fund requirement for THAI Scheme

Classification of Village Panchayats on the basis Allocation per Panchayat (Rs. In of Population (2001 census) lakhs)

Sl.No. Population No.of Village Panchayats 1 500 and Below 66 2 501-1,000 1,175 Sl. No Sl.No Range Habitation Village No.of Panchayats Population Total Population Average Panchayat per Minimum grant basic Additional Funds Funds Total Requirement Total crores) In (Rs.

3 1,001-3,000 7,228 1 Below 5 6241 12534047 2008 20 0 20 1248.20 4 3,001-5,000 2,554 2 5-15 5434 17392688 3201 20 10 30 1630.20 5 5,001-10,000 1,354 3 16-25 637 3553429 5578 20 20 40 254.80 6 Above 10,000 147 Total 12,524 4 Above 25 212 1864689 8796 20 30 50 106.00

Total 12524 35344853 19583 - - - 3239.20

Fund for survey, IEC, Preparatory activities and awards 160.80 Considering the number of habitations, the Village Panchayats are classified as below: Grand Total 3400.00

The requirement of a panchayat will be

more if it has more number of habitations.

55 56 Taking this concept into consideration, the the habitations. The minimum requirement panchayats have been grouped into 4 shall include water supply, street lights, roads, categories based on the number of habitations burial grounds, pathway to burial grounds, etc. for the purpose of allocation of funds. Thus, The additional requirement will include public village panchayats with more number of distribution shops, Anganwadi Centres, SHG habitations and having a larger population shall buildings, threshing floor and play ground. receive more funds. The above table clearly depicts the fund requirement for the 12,524 3.1.1 Water supply panchayats which is Rs.3,400 crores. This Drinking water supply works like scheme is scheduled to be implemented over a provision of power pump, extension of pipeline, period of 5 years and every village panchayat augmentation of existing source shall be taken would be taken up for implementation up, depending upon the requirement. proportionately every year and funds to the tune of Rs.680 crores would be allocated to 3.1.2 Street lights them annually. Out of this, an estimated sum New streetlights will be provided in the of Rs.200 crores would be utilized for new habitations, extension areas, Adi-dravidar improving link roads and for conversion of & Tribal habitations and IAY housing colonies, earthen and gravel roads into all weather based on the actual needs. Additional street roads. All the habitations in the Village lights, including Solar powered lights, will be Panchayats would be covered at a total cost of provided in the areas where the existing Rs.3,400 crores under the THAI scheme. coverage is felt inadequate.

The Government have proposed to conduct a detailed survey to ascertain the availability of basic needs and assess the further requirement of basic infrastructure for

57 58 3.1.3 Roads available, top priority will be given to provide 3.1.3.1 Cement Concrete Roads approach road or pathway.

Pavements with residential units on The scheme shall also provide for sides, streets or lanes prone to water logging, dovetailing of funds from other schemes of RD part of the uncovered portion where a portion & PR Department and other departments. of the street has already been covered with 3.2 Pasumai Veedugal Thittam cement concrete, will be taken up on priority.

“India Lives in Villages” is the famous 3.1.3.2 Link Roads quote of the Father of our Nation, Mahatma

Link roads will cover bus-plying roads, Gandhi. The statement is as true today as it upgradation of WBM roads to BT roads was 64 years ago. Nearly, 68.84% of India‘s connecting two or more habitations in the same population lives in the villages and 51.55% of Panchayat and upgradation of earthen/gravel the population of the state of Tamil Nadu is roads. rural based.

3.1.4. Cremation / Burial grounds Housing is considered to be the basic requirement for human survival. The ownership Each burial ground / cremation ground of a house provides considerable economic will be provided with approach road, compound security and dignity in the society. For a wall, cremation shed, water facility and lights. homeless person, the ownership of a house brings a fundamental and significant change in 3.1.5 Pathway to burial ground his social existence.

Wherever the pathway is already The requirement for rural housing is available, improvement of the existing pathway increasing day by day. Hence, Rural Housing will be taken up and wherever pathway is not

59 60 has attracted sizeable attention in recent years in the country has any State Government and recognition of housing deficiencies and it’s implemented a free housing scheme with 300 rectification has been the core of the Rural sq.ft. area. Development programmes of the State. The scheme aims at providing solar As announced on the floor of the Tamil powered green house for the poor people living Nadu Legislative Assembly earlier, “Rural below poverty line in rural areas. It is proposed Housing scheme implemented by the previous to construct 60,000 Pasumai Veedugal during Government is fraught with many 2011-12. shortcomings. The unit cost of Rs.75,000/- provided per house is grossly inadequate, as Each house will measure about the cost of construction has gone up by two to 300 sq.ft. at an unit cost of Rs.1.80 lakhs three times recently. This has forced many of inclusive of an amount of Rs.30,000/- made these poor families into debt trap. Construction available for installation of Solar Powered Home of large number of houses is yet to be Lighting System. The Government has commenced for the same reason. Therefore, provided an overall budgetary support of this Government have decided to discontinue Rs.1080 Crores during 2011-12 for the this scheme. Alternatively, this Government will construction of 60,000 Pasumai Veedugal. launch a “Solar Powered Green House Scheme” for the benefit of the poor in the rural areas and construct houses measuring 300 square 3.2.1 Features feet with an unit cost of Rs.1.80 lakh”. This 1. The Pasumai Veedugal Thittam will be Government can assert with great pride that fully funded by the State Government. the Pasumai Veedugal Thittam is a unique scheme in the history of the country in addressing the rural housing issue and nowhere

61 62 2. All the people below poverty line in rural This Government proposes to replace the areas will be eligible for Pasumai existing streetlights with solar powered Veedugal Thittam. streetlights with the objective of reducing the 3. Each house will be about 300 sq.ft. current consumption and maintenance charges 4. The unit cost of each house will be and promote renewable energy in rural areas. Rs.1.80 lakhs. 5. Each house will have a rainwater Since the programme is to be harvesting structure. implemented in Village Panchayats on an 6. Each house will be provided with solar experimental basis, 1,00,000 street lights in powered compact fluorescent lamps. 1000 Village Panchayats will be taken up for (CFL) replacement with solar power over next five 7. Tamil Nadu Energy Development Agency years upto 2016. For the year 2011-12, 20,000 will implement the Solar Powered Home streetlights will be taken up for replacement Lighting System component. with solar power. The total cost of the scheme would be Rs.49.60 crores out of which the 3.3 Energising the street lights with solar Government of India will provide Rs.11.28 power crores as subsidy and the balance Rs.38.32 crores will be provided by the State As already announced on the floor of the Government. The Department of Rural Assembly that “This Government will initiate Development and Panchayat Raj shall co- steps to energise street lights with solar energy ordinate with the Tamil Nadu Energy on an experimental basis”. There are Development Agency for its guidance and 17,42,804 streetlights in all the Village implementation of the energization with solar Panchayats. power.

63 64 3.4 Comprehensive School Infrastructure New kitchen sheds will be taken up in Development Scheme those schools where kitchen sheds are not available and the existing damaged kitchen This Government proposes to launch a sheds will be taken up for repair and new scheme called Comprehensive School renovation. Additional rooms/store rooms may Infrastructure Development Scheme (CSIDS) also be constructed for stocking the during the current year. The objective of the commodities. scheme is to provide basic infrastructure facilities like new buildings, kitchen sheds, Existing water supply system in the water supply, toilets, etc., in the Panchayat schools which are in damaged condition will be Union Primary and Middle Schools in rural taken up for repairs. Extension of pipeline will areas. Repairs and renovation of the existing be provided wherever necessary and if the facilities will also be taken up wherever school toilets are not equipped with water necessary. facility, water supply will be provided to the toilets. New water supply connection from the The new school buildings will be Panchayat or a new borewell will also be constructed with RCC roof with weathering provided wherever it is necessary. course on the basis of the strength of the students. The space available in the school This Government shall ensure that all the premises will be used for the new construction Panchayat Union schools have adequate toilet and if adequate space is not available, then a facilities for girls and boys. Incinerators will be new floor will be added to the existing RCC provided for the benefit of girl students. If it is building after assessing the structural stability felt that funds under Total Sanitation Campaign of the building. are insufficient to meet the requirement of new toilets, then, the toilets can be taken up under the Comprehensive School Infra-structure

65 66 Development Scheme also. This scheme will also be implemented in the Panchayat Union The current allocation of Rs.1.75 Crores schools located in Town Panchayats and per MLA per annum will be enhanced to Rs.2 third grade Municipalities. Crores per Constituency from 2011-12 onwards. Committees will be constituted at the district level to take up a detailed survey for The District Collector is the authority to ascertaining the infrastructural needs of the accord administrative sanction for the chosen schools. work and he will also identify the implementing A sum of Rs.100 Crores will be agency. An amount of Rs.1.125 crores shall be earmarked during the year 2011-12. earmarked for priority works, exclusively fixed by the Government and out of the remaining 3.5 Member of Legislative Assembly Rs.87.5 lakhs, the MLAs can choose works of Constituency Development Scheme their choice in tune with the guidelines of the (MLACDS) scheme.

The main objective of Member of 3.5.1 MLACDS – Works to be taken up Legislative Assembly Constituency under Tied Component

Development Scheme (MLACDS) is to identify As stated above, Rs.1.125 crores shall be and implement the essential works to bridge spent on works prescribed under “Tied the critical infrastructure gaps in the Assembly Component”. In 2011-12, in order to provide Constituencies. The MLACDS is fully funded by infrastructure facilities to Schools, a sum of the State Government and each MLA identifies Rs.25 lakhs per MLA shall be earmarked under and proposes the works desired to be executed the tied component for provision of in his Constituency. The Scheme is infrastructure facilities like toilet facilities, implemented both in rural and urban areas.

67 68 water supply etc to Schools. Moreover, it has 3. Renewal of badly worn out BT roads been established that a large number of (laying of BT layer only with filling up of Anganwadi Buildings, Noon Meal Centres, Noon potholes, if necessary) Meal Kitchen Sheds, to a large extent in urban 4. Laying of cement concrete roads. areas and to lesser extent in rural areas are 5. Provision of buildings and/or compounds functioning in dilapidated buildings, a walls for Government and Local body programme for construction of new buildings is Hospitals, Primary Health Centres, proposed to be taken up by this Government Government Veterinary Hospitals and and this will be done in a phased manner. also for Government Schools, Panchayat Each MLA shall allot Rs.20 lakh for construction Union Schools, Adi Dravida Schools, of Anganwadi Buildings, Noon Meal Centres and Kallar Reclamation Schools, Government Noon Meal Kitchen Sheds in rural as well as Colleges and Government Hostels. urban areas from MLACDS funds. The MLAs 6. Provision of Infrastructural facilities to shall also set apart Rs.5 lakhs each for aids & Government Special Schools for the appliances for differently abled persons. disabled and Government Orphanages. 7. Construction of bridges. For the remaining amount of Rs.62.50 8. Provision of additional burial grounds, lakhs under Tied Component, the MLA may cremation grounds to the Village choose one or more works of the following Panchayats not having such facilities. types. 9. Construction of new houses as per IAY

3.5.1.1 In rural areas norms. 3.5.1.2 In urban areas 1. Installation of solar street lights. 1. Installation of solar street lights. 2. Upgradation of gravel/WBM Roads to BT 2. Upgradation of gravel/WBM Roads to BT standard. standard.

69 70 3. Renewal of badly worn out BT roads 3.5.2 MLACDS – Works to be taken up (laying of BT layer only with filling up of under Untied Component potholes, if necessary). As in the case of Member of Parliament 4. Laying of cement concrete roads. Local Area Development Scheme, certain types 5. Provision of buildings and/or compound of works are banned under MLACDS including walls for Government and Local body desilting of ponds, rivers, ooranies and Hospitals, Primary Health Centres, channels. An illustrative negative list is Government Veterinary Hospitals and furnished which summarizes the list of works also for Government Schools, Panchayat that are prohibited under the scheme. Barring Union Schools, Adi Dravida Schools, the above works, the MLA is free to choose and Kallar Reclamation Schools, Government recommend any work including those Colleges and Government Hostels. prescribed in the tied component out of the 6. Provision of Infrastructural facilities to untied component of Rs.87.50 lakhs. Government Special Schools for the disabled and Government Orphanages. 3.5.3 List of works prohibited under 7. Construction of bridges. MLACDS

8. Provision of infrastructure facilities to 1. Office and residential buildings belonging burial grounds/cremation grounds. to Central and State Governments, their 9. Provision of concrete pavements, with departments, Government Agencies/ storm water drains if so required. Organizations and Public Sector 10. Formation of new public parks. Undertakings. 11. Construction of public toilets.

2. Office and residential buildings and other 12. Purchase of Jet rodding machines and works belonging to private, cooperative hydraulically operated sewerage and commercial organizations. machines. 3. All works involving commercial

71 72 establishments/units. 4. All maintenance works of any type. The total allocation for MLACDS for 5. All renovation and repair works. 2011-12 will be Rs.470 crores. 6. Grants and loans, contribution to any 3.6 Self Sufficiency Scheme Central and State/UT Relief Funds.

7. Purchase of all movable items. This Government introduced the Village 8. Acquisition of land or any compensation Self Sufficiency Scheme in 2001 later renamed for land acquired. as Self Sufficiency Scheme with Rural 9. Reimbursement of any type of completed Integrated Sanitary Complex for women, or partly completed works or items. streetlights and VAO office buildings as priority 10. Assets for individual/family benefits. areas with the active participation of the 11. All revenue and recurring expenditure. community. This Government recognized the 12. Works within the places of religious community participation in collaborative worship and on land belonging to or decision-making, mediation, community owned by religious faith/group. building and consensus building to ensure an 13. Desilting of ponds, ooranies, rivers, tanks, open and accountable process through which canals, channels and the like. the individuals and groups could exchange 14. Gravel / WBM roads (roads upto BT views and promote useful community assets. standard only should be taken up).

15. Installation of High Mast Lights. The Village Self Sufficiency Scheme was a participatory demand driven scheme to The MLAs shall spend 19% of the promote and strengthen self-help and self- allocation to the works for the areas reliant attitude of the village community. The predominantly inhabited by SC/ST in rural scheme involved the village community directly areas or benefiting people living in slums in in the developmental process in planning, urban areas.

73 74 resource mobilization, execution and 3. Estimates will be prepared only after maintenance. The Government supplemented ascertaining the need and the feasibility the efforts of the community with financial of the work. assistance and provided technical support. The felt-needs of the public could be easily 4. In case the requirement exceeds the articulated and covered under the scheme. allocation, the District Collector shall arrange the works in the order of priority This Government proposes to encourage and accord administrative sanction. the self-reliant attitude of the rural community and encourage public participation by re- 3.6.2 List of works introducing the Self Sufficiency Scheme in

2011-12. This scheme will be implemented It is proposed to admit the following works both in rural and urban areas. The public shall under Self Sufficiency Scheme: contribute not less than one third of the estimated cost of the identified work. 1. Construction of buildings, laboratories,

3.6.1 Selection of works toilets and compound walls/fencing to Government, Adi Dravidar, Tribal, 1. The felt-need for taking up a work may Panchayat Union and Kallar Reclamation originate from individuals, groups, Schools, Government Colleges and institutions, public or private companies Government Hostels. or from the community. 2. Construction of buildings, Compound walls

2. The District Collector shall receive the and fencing to Government Hospitals, application from the public on the work Primary Health Centres, Sub-centres, identified and also the acceptance letter Veterinary Dispensaries, Livestock for contributing not less than one third of Centres and libraries. the estimated cost.

75 76 3. Construction of libraries in urban areas, computers and accessories should not be Noon Meal Centres, Kitchen sheds, purchased. Anganwadis and Public Distribution shops 9. Construction of classrooms, laboratories in rural and urban areas. and toilets in 100% Government-aided 4. Creation of community assets like and 100% Tamil medium schools. drinking water sources, Cement concrete roads and Threshing floors in rural and 3.6.3 List of Prohibited Works

urban areas. The following works under the SSS 5. Maintenance of all community assets. cannot be taken up unless specifically included Priority may be given for maintenance of in the exceptions: Integrated Sanitary Complex for Women. 1) Construction of office and residential 6. Construction of bridges, culverts, buildings belonging to Central and State upgradation of gravel/WBM roads to BT Governments, including Public Sector standard, renewal of worn out BT roads, Undertakings and Co-operative Societies. improvement of streets and lanes with Exception: Construction, Repair and brick or metal stones or cement slabs or Renovation of residential units of Primary cement concrete. Health Centres / Government Hospitals, 7. Formation, improvement and Construction of buildings, compound walls maintenance of Parks, Play grounds, for all types of Government hospitals, Traffic Islands, Fountains, Street lights Primary Health Centres and Government (including solar lights). Veterinary Hospitals, Construction of Public 8. Purchase of Furniture, Computers and Distribution Shops, Direct Procurement accessories for Government and Centres, Milk Producers’ Co-operative Panchayat Union Schools, Libraries and Societies and Bulk Chilling Centres can buildings for the use of the public. Old however, be taken up.

77 78 2) Purchase of all movable items, equipments For such cases, apart from Collector and furniture.

making his own enquiries, the following Exception: Purchase of furniture and certificates should be obtained from the equipments for Government Schools, District Elementary Educational Officer or Panchayat Union Schools, Adi Dravida and Chief Educational Officer of the district Tribal Welfare Schools, Kallar Reclamation concerned before undertaking the works. Schools, Noon Meal Centres, Anganwadis, Government Colleges, Government (i) The school has 100% Tamil medium Students Hostels, Government Hospitals, Classes/Sections . There are no English Primary Health Centres and Government Medium Sections. Veterinary Hospitals are permitted. (ii)The School must be 100% Government aided. No self-financing course / 3) Any work in Government-aided and Self- classes are run in the above school in financing Schools and Colleges. the same campus or different Exception: Construction of class rooms, campuses under the same laboratories and toilets in 100% management . Government aided schools can be taken up 4) All works involving commercial if they have only Tamil as medium of establishments/units. instruction. The assistance by way of 5) Grants and loans, contribution to any Government grant under this scheme to an Central and State/UT Relief Funds. eligible aided school should not exceed 6) Acquisition of land or any compensation Rs.10 lakhs in a particular year. Once a for land acquired. Government aided school as above has 7) Reimbursement of any type of completed been assisted, it is not eligible for further or partly completed works or items. assistance under this scheme for a period 8) Assets for individual/family benefits. of next 3 years. 9) All revenue and recurring expenditure.

79 80 10) Works within the places of religious worship and on land belonging to or To facilitate larger participation of the owned by religious faiths /groups. people in this scheme, if the public or 11) Desilting of ponds, Ooranies, rivers, contributors opt to execute the work tanks, canals, channels and the like. themselves or through their agency, willingness should be given by them in writing while Exception: Desiltation, consolidation of applying for the work under Self Sufficiency bunds & constructions / renovation of sluices/ Scheme. The District Collector will examine the surplus weirs etc., of PWD tanks only, if found request and permit the contributors or the essential in the opinion of the District agency to execute the work if the public Collectors. The public contribution should not contribution is 50% or more of the estimate of be less than 50% of the estimate prepared the work. But in case of Desiltation of PWD by PWD. The upstream / downstream supply tanks even if the public contribution is 50% or channels may be taken up under MGNREGS / more the work should be executed only IAMWARM wherever applicable. through tender. 12) Gravel / WBM roads (roads upto BT standard only should be taken up). The assets created under the scheme shall 13) Installation of Sodium Vapour lamp / High be maintained, preferably by the user group Mast Lights with self- generated resources.

An amount of Rs.100 crores will be

3.6.4 Execution of works allocated during 2011-12 for Self Sufficiency Scheme. Execution of works will be done by the Local Bodies or the Department concerned through tender as per the Tamil Nadu Transparency in Tenders Act, 1998.

81 82 3.7 Rural Infrastructure Scheme (RIS) 3.8. Renovation of Integrated Sanitary Complex for Women Since the objective of the Rural Infrastructure Scheme was to stabilize the Improved sanitation for women was the assets created under MGNREGS and to create maxim of the Rural Development Department basic infrastructure facilities and durable assets when this Government assumed power in in the villages, this Government shall continue 2001. Sanitation was a hidden gender problem the implementation of Rural Infrastructure and the rural women’s lives were severely Scheme and during 2011-12, an amount of Rs. affected due to the absence of proper sanitary 380 Crores will be provided for this purpose facilities. The women without toilets in their under the State Finance Commission Grant. households had to go out to relieve themselves Priority will be given for: in the dark. The limited or no access to the toilet facilities and compulsion to wait till the • the upgradation of existing Earthen and dark, resulted in constipation and adapted diet Gravel roads into WBM roads; and drinking habits which led to severe health • upgradation of existing WBM roads into BT problems. Absence of sanitary facilities was due Roads; to both poverty and cultural inhibitions, which • repairs to the sluices, surplus weirs, had to be overcome. Therefore, it was of construction of retaining wall in the water paramount importance to ensure privacy and bodies desilted under MGNREGS; and safety to the women besides improving general • construction of culverts and retaining walls hygiene and health to the rural people. in the newly formed roads under MGNREGS. The Government in 2001 decided to build

Integrated Sanitary Complexes for Women in

all the 12,618 Village Panchayats in the State, at an approximate area of 750 sq.ft. each. The

83 84 selected sites were easily accessible to the Low water using toilets were promoted rural women and nearer to the habitations, and the bath waste water was utilized for facilitating easy approach to the users. Each raising vegetables which was also a source of complex had 14 water closets, 2 bathrooms, 1 income for the Self Help groups which looked water tub and stone-paved washing facilities. after the maintenance of the complexes. The Adequate water supply for washing and bathing design incorporated better ventilation and the requirements was also ensured. The total Government also encouraged biogas- users were identified and grouped for the generating units for generation of power for purpose of allocation of individual toilets within lighting and water pumping needs of the the complex. The Village Panchayats provided complexes in order to reduce the recurring electricity connection for water supply & expenditure on power consumption. In toto, lighting and the allottee families maintained the the endeavour of the Government was to upkeep of the complex. The complexes were sensitize the rural masses that development provided with incinerators for disposal of the would be incomplete if environmental sanitary napkins of the user women. sanitation was not addressed adequately.

Initially, 385 Integrated Sanitary Most of the Integrated Sanitary Complexes for Women were constructed @ 1 Complexes for Women are rendered unusable per Panchayat Union at a cost of Rs.2.00 lakhs since the previous Government did not give each. Between 2001 and 2004, all the Village adequate attention for its maintenance. The Panchayats in the state were covered under the Hon’ble Chief Minister has directed to revive all scheme with the enhanced unit cost of Rs.2.25 the sanitary complexes immediately. lakhs.

85 86 3.9 Rural Buildings Maintenance and i. To create more awareness to the Renovation Scheme (RBMRS) community on the adverse consequences

of open defecation practices Rural Buildings Maintenance and ii. To recognize the special needs of different Renovation Scheme (RBMRS) was introduced categories of people and promote with an objective of maintaining the assets of sanitation needs of specific groups like rural Local Bodies. Continuous and proper children, women, adolescents, aged maintenance of the buildings should be done so people, disabled etc., as to have the full utilization of the assets iii. To promote environmental sanitation in all created. Hence, this Government has decided institutions like Anganwadis, to implement the programme of RBMRS with an Schools, public places, etc., annual outlay of Rs.100 crores under the State iv. To develop and promote technology Finance Commission Grant for the year 2011- options for different geographic locations 12. During 2011-12, priority will be given to and conditions of water availability, depth renovate the Integrated Sanitary Complexes of water table etc., for Women under this scheme. v. To promote hygienic behaviour through

3.10 Clean Village Campaign change in knowledge-attitude practices and skills for improving environmental This Government launched “Clean Village sanitation. Campaign” in 2003 to create a momentum to vi. To empower the community and local bring about a sanitary revolution in the State. governments in planning and The Clean Village Campaign encompassed all implementation, strengthening their activities taken up in the village for managerial capacity and responsibility on environmental sanitation. all aspects of environmental sanitation. The objectives of the Clean Village Campaign were:

87 88 vii. To enable net-working, coordination and houses, were eligible to be nominated for a better convergence of various agencies cash award of Rs.5.00 lakhs by the State. The and groups working in this sector with a Government disbursed awards every year to 15 view to optimise efficiency in such Village Panchayats as a “Cash and implementation and ensuring Recognition Incentive”. However, the scheme sustainability of systems. was shelved by the previous Government and the Clean Village Campaign will be re- The strategy is focused on mobilising the introduced by this Government for improving community through intensive IEC activities with and maintaining the sanitation in rural areas. the involvement of Village Panchayats and various other Departments. The components 3.11 Programme for Comprehensive of Clean Village Campaign: Development of Dharmapuri and Krishnagiri Districts 1. Eliminating the practice of open defecation It is a Socio-economic development 2. Water conservation and waste water re- programme which was launched in the year use 2003-04, exclusively for Dharmapuri and 3. Solid waste management Krishnagiri Districts to contain the Naxal 4. Night soil based Biogas plant activities and curb the rise of Naxal movement in the area. An yearly allotment of Rs.7.50 The Village Panchayats with 100% crores is made for the construction of new sanitation coverage in individual households, houses, repairs of group houses, distribution of schools and were free from open defecation tool kits & implements to the rural youth, with clean environment through solid waste assistance to differently abled, widows and management and water conservation and also destitutes. the provision of rain water harvesting in all the

89 90 An allotment of Rs.7.50 crores will be 4. CENTRAL SCHEMES

made under the scheme for 2011-12. 4.1 Mahatma Gandhi National Rural Employment Guarantee Scheme 3.12 Part II Schemes The Mahatma Gandhi National Rural The Government proposes to sanction Employment Guarantee Scheme (MGNREGS) Rs.2.00 crores for the following 6 items as was conceptualized and enacted as an Act in under: the Parliament in September 2005 to give a Sl.No. Details Amount statutory backing to the scheme. (Rs.lakhs) 1. Provision of amenities and 14.20 Computers with accessories in the The objective of the Act is to enhance the Rural Development and Panchayat Raj Department, Secretariat. livelihood security in Rural areas by providing 2. Modernisation of Directorate of Rural 56.40 Development & Panchayat Raj. atleast 100 days of guaranteed wage 3 Provision of amenities and vehicle to 19.40 employment in a financial year to every the Tamil Nadu State Election Commission. household whose adult members volunteer to 4. Construction of Residential Quarters 35.00 for Project Director, DRDA, do unskilled manual work. The primary . objective of the scheme is to augment the 5. Construction of Residential Quarters 35.00 for Project Director, DRDA, Ariyalur wage employment and the auxiliary objective is District. 6. Providing Jeeps to 7 Assistant 40.00 to strengthen natural resource management Directors (Panchayat)/Personal through works that address causes of chronic Assistant (Development). Total 200.00 poverty like drought, deforestation, soil erosion, etc., and thus encourage sustainable development.

91 92 In Tamil Nadu, the scheme was first 3. Job card is issued within 15 days of notified on 2.2.2006 in 6 districts of the State, application / oral request. which was subsequently extended to other 4. Job card holders may apply for districts in a phased manner. employment in writing. In such cases, the Village Panchayat will issue a dated Coverage of Districts in Phases under MGNREGS receipt, which will stand as a guarantee to

Phase – 1 Phase –II Phase – III provide employment within 15 days. (2.2.2006 (1.4.2007 (1.4.2008 onwards) 5. The worksite is ordinarily within a radius onwards) onwards) 1. Cuddalore 1. Thanjavur 1. Kanchipuram 11.Trichy of 5 kms. of the Village and if the distance 2.Villupuram 2. Tiruvarur 2.Tiruvallur 12.Perambalur exceeds 5 kms, extra wages of 10% are 3.Tiruvannamalai 3. Karur 3.Vellore 13.Ariyalur 4.Nagapattinam 4. Tirunelveli 4.Salem 14.Pudukkottai payable to meet the additional 5.Dindigul 5.Namakkal 15.Madurai transportation and living expenses. 6.Sivagangai 6.Dharmapuri 16.Theni 7.Krishnagiri 17.Ramanathapuram 6. The wages are paid according to the 8.Erode 18.Virudhunagar Minimum Wages Act 1948, for agricultural 9.Coimbatore 19.Thoothukudi 10.Nilgiris 20.Kanniyakumari labourers in the State. 21.Tiruppur 7. The wages per day has been fixed at

Rs.119/- for the State of Tamil Nadu by 4.1.1 Salient features of the scheme Government of India.

8. Wages are equal to men and women. 1. Adult members of rural households willing 9. Disbursement of wages is normally done to do unskilled manual work may register on weekly basis and should be paid in writing or orally, with the Village within 15 days. Panchayat. 10. One third of the beneficiaries should be 2. The Village Panchayat will issue a job women. card, bearing the photo and the register 11. Work site facilities such as drinking number, free of cost. water, shade etc., are provided.

93 94

12. As per the guidelines, the shelf of 19. Under Section 12 of the MGNREG Act, projects for a Village is recommended by Government of Tamil Nadu has the Grama Sabha and 50% of the works constituted State Employment Guarantee should be allotted to Village Panchayats Council to advise, evaluate and monitor for execution. In case of Tamil Nadu, the implementation of the scheme. only the Village Panchayats execute the

works. 4.1.2 Permissible works 13. The wage and material component ratio

has to be maintained at 60:40. In Tamil 1. Water conservation and water Nadu 100% labour intensive works alone harvesting. are taken up under MGNREGS. 14. No contractors or machinery are allowed. 2. Drought proofing including afforestation 15. The Central Government bears 100% and tree plantation.

wage cost of unskilled manual labour and 3. Irrigation canals, including micro and 75% of the material cost including wages minor irrigation works. of skilled and semi-skilled workers. 4. Provision of irrigation facility, plantation, 16. Grama Sabha conducts the social audit in horticulture and land development in the respect of MGNREGS through Social lands owned by households belonging to Audit Committees. the SC/ST, or in the lands of the 17. Grievance redressal mechanism is in beneficiaries of land reforms, or in the place to ensure quick response and a Toll lands of the beneficiaries under the Indira free Help line (1299) has also been Awas Yojana / BPL families. provided. 5. Renovation of traditional water bodies

18. All accounts and records of the scheme including desilting of tanks. are available for public scrutiny. 6. Land development.

95 96 7. Flood control works including drainage in • The guidelines provide for development water logged areas. of lands owned by households belonging 8. Rural connectivity for all weather access to the SC/ST, small and marginal including culverts and drains wherever farmers or the land of the beneficiaries necessary. of land reforms or the land of the 9. Any other work that may be notified by beneficiaries under IAY/BPL families. the Central Government in consultation Such land development activities are with the State Government. being practised in some States and the Government proposes to explore the This Government proposes to take the possibility of extending land development following steps for the effective implementation activities including irrigation facilities, of MGNREGS. horticulture etc., to the eligible landholders. • The minimum wage prescribed for 8 • The practice of disbursing the payments hours of work under MGNREGS is to the workers by cash is proposed to be Rs.119/-. As the wages are disbursed on dispensed with and make the payments out turn basis, on many occasions, the to the beneficiaries through the banks in beneficiaries get wages in the range of a phased manner, as a measure of Rs.80/- to Rs.90/-. Hence, the separating the payment agency from the Government proposes to conduct mass implementing agency, to curtail any awareness campaigns and give wide scope for malpractices. publicity to enable all the beneficiaries to • At present, only one work site is get their full wage of Rs.119/-. permitted for each Village Panchayat at

any given time. This has led to huge

assemblage at the work sites leading to difficulties in the supervision of works.

97 98 Hence it is proposed to permit more than the right order of priority. This will also one work and also appoint one Worksite avoid random selection of ponds, tanks, Assistant for each worksite to supervise ooranies etc., in a piecemeal manner. the works. • MGNREGS being one of the largest

• Agriculture sector has been repeatedly schemes implemented by the voicing their concern over the non- Government, it has become imperative availability of sufficient labour to be to introduce Real Time Monitoring. As the engaged in the agriculture operations, as works are implemented in all the Village a substantial work force takes up Panchayats simultaneously, the MGNREGS works. Hence, it is proposed Government proposes to introduce SMS to take up the issue with Government of based monitoring, to consolidate the India for announcing a ‘Scheme recess’ details and communicate hierarchically. for MGNREGS during the agriculture season. The approved Labour Budget for the year 2011-12 is Rs.3,472 crores. • This Government proposes to resort to

efficient fund transfer management 4.2. Indira Awaas Yojana (IAY) system. The funds from Centralised

MGNREGS account maintained at the Indira Awaas Yojana, which used to be a nodal banks will be electronically component of Jawahar Rozgar Yojana became transferred to the respective branches an independent scheme from January, 1996. within an hour. Its objective is construction of free houses to • This Government proposes to generate members of the Scheduled Castes/Scheduled satellite-based maps indicating the Tribes, freed bonded labourers in rural areas current status of water bodies in order to and also to non-SC/ST rural poor people, living identify & select the water structures in below poverty line. Beneficiaries are selected

99 100 from the Below Poverty Line (BPL) list under this scheme has been increased from approved by the Grama Sabha. Atleast 60% of Rs.75,000/- to Rs.1 lakh in Tamil Nadu. the total IAY allocation during a financial year should be utilized for construction of SC/ST BPL The Grama Sabha is empowered to select households. A maximum of 40% of allocation is the beneficiaries under the scheme. The for non-SC/ST BPL rural households. 3% should allotment of the dwelling units should be in the be allocated for differently abled persons within name of the female member of the beneficiary the above categories. Government of India household or alternatively, in the name of both have also asked the States to earmark 15% of husband and wife. Toilets will be constructed in the houses to beneficiaries from amongst all the houses dovetailing funds from Total minorities. Sanitation Campaign. The construction of the house is the responsibility of the beneficiary. The Unit cost of each house as fixed by Government of India is Rs.45,000/- which is shared between the Centre and State at the During 2011-12, it is proposed to ratio of 75:25 i.e. the Centre gives Rs.33,750/- construct 1,00,553 IAY houses at an estimated and the State contributes Rs.11,250/- Besides, cost of Rs.1005.53 crores, out of which the the Government of Tamil Nadu gives an State Government’s contribution alone comes additional amount of Rs.30,000/- towards the to Rs.666.16 crores (66.25 %) cement concrete roofing of the house thus 4.3 Member of Parliament Local Area making the unit cost as Rs.75,000/- in our Development Scheme (MPLADS) State till 2010-11. The State Government have increased the RCC roofing cost from The MPLAD scheme was launched in Rs.30,000/- to Rs.55,000/- from this year. December 1993, to provide a mechanism for Thus, the unit cost of the house constructed the Members of Parliament to recommend works of developmental nature for creation of

101 102 durable community assets and for provision of one district, the member can choose any one of basic facilities including community the districts as the Nodal district. infrastructure, based on locally felt needs. The Members of Parliament may A sum of Rs.2 crores was allotted for recommend works for the creation of durable each Member of Parliament per year, both Lok assets with particular stress on drinking water, Sabha and Rajya sabha, for taking up of education, public health, sanitation and roads. developmental works identified by the 15% of the MPLADS funds should be utilized for concerned Member of Parliament. The areas inhabited by Scheduled Castes and 7.5% Government of India have increased the for areas inhabited by Scheduled Tribes. In allocation from Rs.2 crores to Rs.5 crores per case a constituency does not have Scheduled annum per Member of Parliament from 2011- Tribe inhabited area, the earmarked fund may 12 onwards. In the case of Lok Sabha, the be utilized in Scheduled Caste inhabited area scheme is implemented within the constituency and vice versa. of the members concerned and in the case of Rajya sabha, the MP can suggest works in one MPLADS works may be recommended for or more districts within the State from which he the areas affected by natural calamities such as is elected. As regards the nominated MPs, they Floods, Cyclone, Tsunami, Earthquake and can suggest works in any part of the country. Drought. Lok Sabha MPs from the non-affected areas of the State can also recommend The choice of nodal district shall be possible works up to a maximum of Rs.10 lakhs preferred by the Member of Parliament and per annum in the affected area. In case of a intimated to the Ministry of Statistics and calamity of severe nature, the work Programme Implementation and in cases where recommended can be to a maximum of Rs.50 the Lok Sabha Constituency covers more than lakhs per annum for the affected district.

103 104 The fund is released in 2 equal 4.3.1 List of works prohibited under instalments by the Government of India and MPLADS the first instalment is released in the beginning 1. Office and residential buildings of the financial year subject to the condition belonging to Central, and State that the second instalment of the previous year Governments, their Departments, was released for the MP concerned. The second Government Agencies/ Organizations instalment is released subject to the conditions and Public Sector Undertakings. with respect to the expenditure incurred and 2. Office and residential buildings, and utilisation certificates produced. other works belonging to private, cooperative and commercial Funds released by the Government of organizations. India are not lapsable and the funds left 3. All works involving commercial unutilized in a financial year can be carried establishments/units. forward for the utilization in the subsequent 4. All types of maintenance works. years. The balances of the MPLADS funds, 5. All renovation, and repair works. which are not committed for recommended 6. Grants and loans, contribution to any works by the predecessor MP in a Lok Sabha Central and State/UT Relief Funds. constituency, would be passed on to the 7. Assets to be named after any person. successor MP in that constituency. 8. Purchase of all movable items.

The districts can utilize up to 0.5% of the 9. Acquisition of land or any compensation amount spent on completed projects in a year, for land acquired. as contingency expenses on stationery, office 10. Reimbursement of any type of equipment, telephone charges, etc. completed or partly completed works or items. 11. Assets for individual/family benefits.

105 106 12. All revenue and recurring expenditure. Sanitation Campaign’ was launched by Rajiv 13. Works within the places of religious Gandhi National Drinking Water Mission, worship and on land belonging to or Government of India to cover all households owned by religious faith/group. with water & sanitation facilities and promote hygiene behaviour for overall improvement of As per Government of India (Ministry of rural health. The programme is demand-driven Statistics and Programme Implementation) and people-centered on the principle of “Low to website, Tamil Nadu stands third at All India No subsidy”; a nominal subsidy in the form of level in cumulative utilization of funds under incentive is given to the rural poor households MPLADS with 97.29% fund utilization since for construction of toilets. The TSC gives strong 1993. emphasis on Information, Education and For 2011-12, an amount of Rs.285 crores Communication (IEC), capacity building and is likely to be allotted for works under MPLADS. hygiene education for effective behaviour change, with the involvement of PRIs, 4.4 Total Sanitation Campaign Community Based Organisations(CBOs),

NGOs, etc. The Total Sanitation Campaign commenced in Cuddalore and Coimbatore The key intervention areas have been Districts initially and was later extended to the identified as Individual House Hold Latrines remaining districts in a phased manner till (IHHL), School Sanitation & Hygiene Education, 2004. The project period is from 1999 to 2012. Community Sanitary Complex and Anganwadi

Toilets.

In order to ensure sanitation facilities in

rural areas with the broader goal to eradicate

the practice of open defecation, a comprehensive programme called ‘Total

107 108 The sharing of cost among the Centre, • Generate felt-demand for sanitation facilities State and Beneficiary contribution is as follows: through awareness creation and health (in Rupees) education. Sl. Compo GOI GoTN Beneficiary Total • No nent contribution Unit Cover schools/Anganwadis in rural areas Cost with sanitation facilities and promote 1. IHHL 2,200 1,000 300 3,500 (63%) (28%) (9%) hygiene education & sanitary habits among

2. School 24,500 10,500 0 35,000 students. Toilet (70%) (30%) • Encourage cost effective and appropriate 3. Anganwadi 5,600 2,400 0 8,000 Toilet (70%) (30%) technologies in sanitation. • Eliminate open defecation to minimize risk 4. Sanitary 1,20,000 40,000 40,000 2,00,000 Complex (60%) (20%) (20%) of contamination of drinking water sources and food. The total project outlay is • Convert dry latrines to pour flush latrines Rs.1064.25 crores, out of which an amount of and eliminate manual scavenging practice, Rs.725.73 crores has been released and wherever in existence in rural areas. Rs.609.47 crores incurred as expenditure so far. This programme aims at covering all the rural families. Incentive provided under the 4.4.1 Individual House Hold Latrines scheme is extended to BPL families as the (IHHL) same is considered necessary for full

The main objectives are as under: involvement of the community. The APL families are to be motivated to construct the • Bring about an improvement in the general household toilets on their own. The quality of life in the rural areas. construction of the IHHL is undertaken by the • Accelerate sanitation coverage in rural BPL household itself. Under the IHHL areas. component, the target is 44,22,133 in Tamil

109 110 Nadu, out of which 37,06,650 toilets have been forms an integral part of the TSC project. constructed as on 31.7.2011. Out of the Toilets in all types of schools i.e. primary, remaining 7,15,483 toilets to be constructed, secondary, higher secondary and anganwadis it is proposed to construct 5,22,214 IHHLs are constructed under the scheme. Emphasis is during 2011-12. given for toilets in girl schools.

As per the existing norms, the unit cost for All activities with regard to the provision IHHL is fixed at Rs.3,500 out of which, the of sanitation and hygiene education in Schools Government of India gives Rs.2,200/- and the and Anganwadis will be done in tandem with State Government contributes Rs.1,000/- school education department. This Government towards the subsidy and the beneficiary shall ensure that all Schools and Anganwadis in contribution is Rs.300/-. the State are provided with toilets. 4.4.2 School Sanitation and Hygiene education Funding for School Sanitation in a TSC project is shared between the Central Children are more receptive to new ideas Government and State Government in the ratio and the schools/anganwadis are the most of 70:30. Out of the target of 53,678 school appropriate institutions for changing the toilets at a cost of Rs.118.09 crores, 40,201 behaviour, mind set and habits of the children toilets have been constructed so far at an from open defecation to the use of lavatory expenditure of Rs.88.44 crores. The remaining through motivation and education. The 13,477 School toilets will be constructed during experience gained by children through use of 2011-12 at an estimated cost of Rs.47.170 toilets in school and sanitation education crores. imparted by teachers would also reach home and influence their parents to adopt good sanitary habits. School Sanitation therefore

111 112 4.4.3 Anganwadi toilets responsibility or make alternative arrangements at the village level for the In order to change the behaviour of the maintenance of the complex. children from very early stage in life, it is essential to use Anganwadis as a platform for The sharing pattern amongst the behavioural change of the children as well as Government of India, State Government and the mothers attending the Anganwadis. Each the community is in the ratio of 60:20:20. The anganwadi is provided with a baby friendly Village Panchayat can make the community toilet. contribution also. As against the target of In Tamil Nadu, 24,212 Anganwadi toilets 1,438, so far, 1,548 complexes have been have been constructed. It is proposed to constructed at a cost of Rs.23.22 crores. construct 3,758 toilets during 2011-12, at an estimated cost of Rs.3.00 crores. The 4.4.5 Rural Sanitary Marts (RSM) requirement of school and anganwadi toilets in Rural Sanitary Mart is a commercial the districts will be re-worked and the required venture with a social objective. Rural Sanitary additional number will be constructed during Mart is an outlet for dealing with the materials the next financial year. required for the construction of the sanitary

4.4.4 Community Sanitary Complex latrines and also the sanitary facilities required for individuals, families and the environment in The Community Sanitary Complex is an the rural areas. The main aim of having RSM is important component of the TSC and the to provide materials, services and guidance complexes are set up in any place in the needed for constructing different types of Village, which is acceptable to the stake- latrines and other sanitary facilities, which are holders and accessible to them. The Village technologically and financially suitable to the Panchayat is expected to own the ultimate area. The RSM may be opened and operated by

113 114 NGOs, SHGs, Women Organisations, Country. Taking cue from this, Government of Panchayats, etc. An amount of Rs.2.93 crores India had started giving Nirmal Gram Puraskar has been incurred as expenditure for (NGP) from 2005 to give a fillip to the Total establishing 195 RSMs in 31 districts of the Sanitation Campaign. The NGP recognized the State. efforts of PRIs and other institutions towards full sanitation in their respective areas. 4.4.6 Production Centres NGP strives: Production Centres are the means to improve the production of cost effective, 1. To bring sanitation to the forefront of affordable sanitary materials under the TSC social and political discourse for project. A maximum amount of Rs.3.5 lakhs development in rural India. per production centre can be provided for 2. To develop open defecation free and construction of shed, training of masons and clean villages also for sanction of revolving fund. So far, 3. To give incentive to PRIs to sustain the 65 production centres have been established in initiatives taken by them for full the State at a cost of Rs.65 lakhs. sanitation coverage 4. To increase social mobilization by 4.4.7 Nirmal Gram Puraskar recognizing the role played by

organizations in universal sanitation Hon’ble Chief Minister of Tamil Nadu coverage. announced the ‘Clean Village Campaign’ Award in July 2003 for the best performing Village So far, 5 Block Panchayats and 2,334 Panchayats in the field of Sanitation, there by Village Panchayats of Tamil Nadu have received giving prime focus on the importance of NGP awards for achieving 100% sanitation and Sanitation for the first time in the entire over-all cleanliness. The NGP award incentive

115 116 amount varies from Rs.50,000 to Rs.5 lakhs critical gaps in local infrastructure and other in case of Village Panchayats and Rs.10 lakhs development requirements that are not being to Rs.20 lakhs for Block Panchayats, based on met adequately by the existing inflows. The the population. scheme focuses on strengthening the local governance through capacity building, This Government will add vigour to the providing professional support to local bodies sanitation initiatives and ensure a fully for planning, implementation & monitoring their sanitized and open defecation free Rural plans and improve the performance and Tamil Nadu through sustained multi media delivery of critical functions. campaign.

4.5 Backward Regions Grant Fund (BRGF) BRGF consists of two funding windows:

The erstwhile Rashtriya Sam Vikas 1. Capacity Building Fund meant to build Yojana (RSVY) implemented in the 5 backward capacity of the elected representatives districts of Tamil Nadu through the funding of and the officials associated with Union Planning Commission was transferred to Panchayat Raj Institutions in planning, Ministry of Panchayat Raj and modified as implementation, monitoring, accounting Backward Regions Grant Fund. The scheme is and improving the accountability & now implemented in 6 districts viz. transparency. Nagapattinam, Sivagangai, Villupuram, 2. An untied grant meant to be used by Tiruvannamalai, Dindigul and Cuddalore Panchayats and urban Local Bodies to Districts. address critical gaps in integrated development, identified through the The BRGF is designed to redress regional participative planning process. imbalances in development so as to bridge the

117 118 The details of funds released are as An annual plan for Rs.117.74 crores has under: been sent to Government of India for sanction and release for the year 2011-12. a. A sum of Rs.21.55 crores has been

released to the State Institute of Rural 4.6 National Project on Biogas Development, Maraimalainagar under Development capacity building component. Biogas can easily be produced from b. As regards the untied amount, the BRGF current waste streams such as, paper districts have received the following production, sugar production, animal waste and amount: so forth. The various waste streams are slurried together and allowed to naturally Sl. Name of the Total amount ferment, producing inflammable methane gas. No. District received Biogas production has the capacity to meet (Rs. in crores) enormous amount of energy needs. Biogas 1. Nagapattinam 36.94 aims at promoting eco-friendly non- 2. Sivagangai 38.19 conventional energy source with multiple 3. Villupuram 55.66 benefits. The objectives of the biogas scheme 4. Tiruvannamalai 47.26 are to provide clean, bio-gaseous fuel mainly 5. Dindigul 45.85 for cooking purpose and thereby reduce use of conventional fuels including LPG. Biogas 6. Cuddalore 43.44 provides bio-fertilizer/organic manure to reduce Total 267.34 the use of chemical fertilizers, mitigates the drudgery of rural women, reduce the pressure on forests, improve sanitation in villages by linking sanitary toilets with biogas plants and

119 120 mitigate climate change by preventing lethal connectivity is bound to reflect on the socio- emissions. economic status.

Connectivity to the habitations is During 2011-12, the physical target of expected to bring-in significant improvement in biogas plants for Tamil Nadu is 1,000 and the various aspects of rural life, especially in components of the financial outlay will be as agriculture sector in the areas of availability of under: raw material, changes in the cropping pattern,

access to market centres, changes in prices of Sl. Component Proposed Rate Total No. No. of (in Rs.) (in Rs.) agricultural produce and increase in dairy units production. 1. Subsidy 1000 8,000 80,00,000 2. Turnkey 500 1,500 7,50,000 This Government has already announced 3. Toilet link 200 1,000 2,00,000 that “Every village with the population of more 4. Users 50 2,000 1,00,000 Training than 500 will have a black topped road and 5. Masons 2 37,500 75,000 other habitations will have an all-weather road” Training Total 91,25,000 The earnestness of this Government to provide good roads for the socio-economic

5. ROADS development of the State is undisputable. This Government ensures access to the remotest Rapid and sustainable development as regions by providing good roads. Building of well as socio-economic transformation in rural new roads and improvement of the existing areas is possible and alleviation of poverty can roads will facilitate transportation of people and be addressed only if all weather connectivity is commodities and generate productive in place. There is a close link between rural employment opportunities. connectivity and growth of employment, education and health care and the state of

121 122 5.1 Pradhan Mantri Gram Sadak Yojana stipulated that only the following categories of (PMGSY) road works would be considered for approval under PMGSY. Pradhan Mantri Gram Sadak Yojana was launched in 2000 to provide all weather access i. Residual new connectivity coverage to unconnected habitations. PMGSY is a 100% envisaged under Phase I of Bharat centrally sponsored scheme. Nirman. ii. Projects to be taken up with the The programme objective is to provide assistance of World Bank and Asian round-the–year connectivity by all weather Development Bank. roads with necessary culverts and cross iii. New habitation connectivity in the 33 drainage structures. identified Left Wing Extremism (LWE) Between PMGSY Phase I (2000-01) and affected districts. PMGSY Phase VII (2007-08 - Bharat Nirman iv. Special road connectivity packages Phase II), 4,949 roads have been taken up for announced for the border areas. a length of 9,984.32 kms at a cost of Rs.2,024 While such are the priorities of NRRDA, crores. Out of this, 4801 works have been Tamil Nadu, as it has been consistently completed so far. The remaining works will be performing well in all the previous phases of completed shortly. Now, Detailed Project PMGSY, leading to all weather road connectivity Reports (DPRs) for upgradation of 1,176 roads to all the habitations with the population of 500 for a total length of 2,031 kms. at an estimated and above, does not have the categories of cost of Rs.577.90 crores have been prepared roads to satisfy the conditions prescribed by and are ready to be transmitted to National NRRDA. When the situation so warrants that Rural Roads Development Agency (NRRDA) the implementation has to be carried to the under Bharat Nirman Phase III (PMGSY Phase next logical phase i.e., to the habitations with VIII). However, Government of India have the population of 250 to 500, the State is

123 124 denied Centre’s allocation under PMGSY as Groups and Non-Government Organisations for there are no habitations with the population of taking up of infrastructure projects in rural 500 and above, which are not connected by all areas. The NABARD has been releasing money weather roads. It is felt that the State should under different tranches. Major investments not be left out of the National PMGSY Agenda covered under the Fund include rural roads, for the better performance of the State in the bridges, minor irrigation structures, schools, implementation of PMGSY scheme since its health centres and power projects. inception. Therefore, the Honourable Chief Loans under RIDF have been sanctioned Minister of Tamil Nadu took up the issue with to Government of Tamil Nadu by NABARD. The the Deputy Chairman of Planning Commission financing of rural roads and bridges on 6.7.2011 at New Delhi at the time of commenced during RIDF II and the funds finalisation of Annual Plan 2011-12 for Tamil received from RIDF were used to construct new Nadu. During the meeting, it was also stressed roads, upgrade existing roads to black topped by the Honourable Chief Minister that more roads, strengthen existing black topped roads, funds should be allocated to Tamil Nadu for etc. Under RIDF, so far, 4,307 roads have been upgradation and improvement of the existing taken up at an estimated cost of Rs.1322.37 rural roads. crores for a length of 10,580.46 kms. Out of

5.2 NABARD – RIDF Roads this, 3,888 works have been completed and the remaining works will be completed shortly. Following the direction from Government During 2011-12, a proposal under RIDF of India, NABARD set up Rural Infrastructure XVII for strengthening of Panchayat and Development Fund (RIDF) in 1995-96, to Panchayat Union roads, for a length of extend financial assistance to the State 2,837.06 kms. at an estimated cost of Governments, Government owned Rs.452.12 crores has been forwarded by the Corporations, Village Panchayats, Self Help Government of Tamil Nadu to NABARD. In the

125 126 first phase, based on NABARD’s clearance, and work orders to be issued to the Government of Tamil Nadu has to sanction 333 contractors/beneficiaries and other road works for a length of 902.07 kms. at an administrative procedures are enormous estimated cost of Rs.143.67 crores. and the quantity alone exerts excessive strain on the administrative &

5. 3 New initiatives for improvement of engineering personnel at block/district quality level. It is proposed to introduce software for online preparation of estimates; • Quality Control measures will be online generation of administrative strengthened by providing critical test sanctions and work orders to avoid the equipments to the quality control delay caused by extensive administrative laboratories, situated in the districts and procedure and ensure an efficient, standardise the equipments available in transparent and accurate system. each laboratory. • Authorised independent laboratories run • This Government proposes to bring in by Government Agencies and reputed desired changes in the type designs of engineering institutions shall conduct the various buildings constructed by this various quality control tests to ensure Department in consultation with the end that the works conform to the prescribed users and bring uniformity in design. standards. • It is proposed to use smart phones with • All the procuring entities shall provide for Global Positioning System (GPS) facility e-submission of bids for all tenders to upload the photographs of the works exceeding Rs.10.00 lakhs in value. during the field inspection to enable • The volume of work with regard to the expeditious feed back. number of estimates to be prepared in

each district, administrative sanctions

127 128 It is also proposed to adopt uniform Assistants, Assistant Executive Engineers, quality standards in the construction of roads Assistant Engineers, Junior Engineers, under all the schemes as the standards Overseers/Junior Draughting Officers, Road adopted at present vary from scheme to Inspectors in the Rural Development and scheme. Panchayat Raj Department as follows:

6. ESTABLISHMENT Sl. Category of Post No. of No. vacancies

6.1 Upgradation of the post of Panchayat 1. Joint Directors of Rural Development 8 2. Assistant Directors of Rural Development 41 Assistants 3. Block Development Officers 7 4. Deputy Block Development Officers 130 The Panchayat Assistants are at present 5. Assistants 3,757 6. Junior Assistants 870 drawing in the scale of pay of Rs.2500-5000 7. Assistant Executive Engineers 5 with a Grade Pay of Rs.500/-. Considering the 8. Assistant Engineers 451 9. Junior Engineers 15 importance of the work involved, this 10. Overseers/Junior Draughting Officers 304 Government proposes to re-designate the 11. Road Inspectors 536 Total 6,124 “Panchayat Assistant” as “Panchayat Secretary” and also provide a Special Allowance of As the vacancies in the various posts will Rs.500/- each, per month. affect the implementation of Schemes, this Government will take necessary steps to fill up 6.2 Filling up of vacancies these vacancies.

This Government proposes to fill up the vacancies existing in various categories of staff like Joint Directors of Rural Development,

Assistant Directors of Rural Development, Block

Development Officers, Deputy Block Development Officers, Assistants, Junior

129 130 7. CAPACITY BUILDING tandem with this Department. The training programmes are designed to sensitise their Capacity Building is a conceptual duties and responsibilities, enhance their approach to development that focuses on capability and improve their performance. understanding the obstacles involved in There are 5 Regional Institutes of Rural enhancing the ability of the target group to Development (RIRD) and one State Institute of identify and meet the challenges. Capacity Rural Development at apex level in the State. building is a continuous process, which refers The RIRD impart training to officials like Village to strengthening of skills/competencies and Panchayat Assistants, Rural Welfare Officers, abilities of people and communities in Assistants, Junior Assistants, Deputy Block developing societies. The Capacity Building Development Officers, Overseers, Road takes place at individual level, institutional level Inspectors, Self Help Groups and Officials from and the societal level. The term ‘training’ other sectoral departments. These Institutes refers to the acquisition of knowledge, skills are located at S.V.Nagaram in Tiruvannamalai and competencies so as to achieve specific District, Krishnagiri Dam in Krishnagiri District, goals such as improving the capability, capacity Pattukkottai in Thanjavur District, and performance. Bhavanisagar in and T.Kallupatti 7.1 Regional Institutes of Rural in . Each RIRD has its own Development jurisdictional districts attached to it for the

The Rural Development and Panchayat purpose of training.

Raj Department of Government of Tamil Nadu In RIRD, faculty members in the Grade of imparts training continuously to the elected Assistant Directors are posted from RD & PR representatives of all three tiers of Panchayats Department and other sectoral departments. and also the officials of RD & PR Department Farm Supervisors, Workshop Supervisors/ and other department officials who work in Mechanics, Ministerial Staff form the

131 132 establishment wing of these Institutes. The 7.2 State Institute of Rural Development Training Programmes are conducted The elected representatives of the rural throughout the year. Local Bodies and the Officials of the RD & PR Ten types of Regular Training Department play a pivotal role for the socio- Programmes and five types of Computer economic development of the rural masses Training are conducted regularly in RIRD. through implementation of the programmes Whenever new schemes are announced by and schemes of the Government. Capacity Government of India and Government of Tamil Building of elected representatives of Nadu, special training programmes are Panchayat Raj Institutions and Officials and conducted in RIRD. The RIRD also functions as functionaries of RD & PR Department is an outsourcing centre for sectoral departments for essential tool available for updating their conducting training programmes. knowledge, upgrading their skills and enriching their attitudes for delivery of quality services. The State Government allocates The responsibility to facilitate the Capacity necessary funds for the salary and non-salary Building is vested with State Institute of Rural expenditure to the RIRD. Besides, each RIRD Development at the State level. receives a sum of Rs.10.00 lakhs annually as Grants-in-aid from the Ministry of Rural The State Institute of Rural Development Development, Government of India, which also (SIRD), Tamil Nadu, is the State apex extends financial assistance for the creation of institution for organising various training necessary infrastructure. programmes for elected representatives of PRIs and functionaries of Rural Development and

Panchayat Raj Department.

133 134 SIRD was established in 1961 at Bhavani Department, LF Audit, Agriculture and on direct Sagar. It was registered as an autonomous recruitment. In addition, Government of Tamil body under the Tamil Nadu Societies Nadu have sanctioned 24 posts of Registration Act, 1975 and started functioning Administrative Staff to SIRD. Further, Ministry in its own campus at Maraimalai Nagar from of Rural Development, Government of India 1991. have permitted SIRD to engage 5 Core Faculty on contract basis as resource persons. The Government of Tamil Nadu have ordered for constitution of 1) Governing Body 7.2.2 Funding Pattern 2) Executive Committee, for managing the affairs of the Institute. The Principal Secretary SIRD organizes training programmes of to Government, Rural Development and Ministry of Rural Development, Ministry of Panchayat Raj Department is the Chairperson. Panchayat Raj of GoI and NIRD. The SIRD The Executive Committee meets once in six receives funds as follows; months and the Governing Body meets once in • Ministry of Rural Development, Government a year. The Director, SIRD, in the cadre of of India provides 100% financial assistance Additional Director of the Department is the to SIRD for organising programmes on Member Secretary looking after administration effective implementation of MGNREGS, IAY, of the Institute. SGSY/NRLM, Lab to Land Initiatives, etc.

7.2.1 Faculty • Ministry of Panchayat Raj, Government of India, supports SIRD to improve the The Government of Tamil Nadu have performance and delivery of critical sanctioned 13 posts of Faculty Members for functions assigned to PRI representatives, SIRD. These 13 posts have been filled up on Officials and functionaries. The Ministry of deputation from the Rural Development & PR Panchayat Raj provides 100% financial

135 136 assistance for organising training • Ministry of Statistics and Programme programmes by SIRD under BRGF Capacity Implementation, Government of India also Building components, being implemented in provides funds for conducting training six Districts in Tamil Nadu, namely programmes under MPLADs. Villupuram, Tiruvannamalai, Cuddalore, • Department of Personnel and Training, Dindigul, Nagapattinam and Sivagangai. In Government of India provides financial respect of the balance 25 Districts, the assistance to SIRD for organizing field Ministry of Panchayat Raj provides 75% of attachment programmes for the Under the training cost and the balance 25% is Secretaries of the Central Government being provided by Government of Tamil Departments. Nadu for organising the training

programmes under RGSY. 7.2.3 Administrative expenses

• NIRD - The National Institute of Rural Development at Hyderabad is the National SIRD receives grants–in–aid for level apex training institution for Rural administrative expenses as follows. Development which provides 100% financial assistance for conducting training 7.2.4 Salary Grant programmes at SIRD on topics like • To meet the salary and other allowances of Integrated watershed Development the faculty members and administrative Programmes, Managerial Skills and GIS staff of the SIRD, Government of India and application on implementation of RD & PR the State Government are sharing the programmes. It also supports SIRD in expenditure in the ratio of 50:50. carrying out Research and Action Research

Projects. • To meet the salary and allowances of five core faculty members engaged by SIRD,

137 138 100% financial assistance is being provided Panchayat Presidents. SIRD also provides by Ministry of Rural Development, training to Officials from the cadre of Block Government of India. Development Officers to Additional Directors, Assistant Engineers to Executive Engineers of 7.2.5 Non–Salary Grant Rural Development. Further, this Institute provides training to Members of SHGs, PLFs, • To meet the office expenses, Government NGOs and Bankers. of Tamil Nadu provides non-salary grant to SIRD every year. 7.2.8 Implementation of Training Programmes 7.2.6 Non–Recurring Grant The State Institute of Rural Development

• To strengthen the Infrastructure facilities conducts residential training programmes in its of SIRD, the Ministry of Rural campus and Off-campus programmes at Development, Government of India District, Block and Village Panchayat levels and provides financial assistance for through RIRD in the case of RGSY.

construction of buildings for hostels, 7.2.9 Resource persons training halls, teaching equipments etc., In order to ensure coverage of large

number of participants and conduct quality 7.2.7 Clientele training progammes, SIRD engages Resource

Persons as follows from the eminent The State Institute of Rural Development organizations. is organizing training programmes for elected • National Informatics Centre, Chennai representatives of District Panchayat • National Institute of Rural Development, Chairpersons, District Panchayat Ward Hyderabad Members, Panchayat Union Chairpersons, Panchayat Union Ward Members and Village

139 140 • Institute of Remote Sensing, Anna Details of training programmes conducted

University, Chennai Officials & PRIs • Anna Institute of Management, Chennai Others Grand Total No. of • Year No. of No. of No. of No. of No. of SRM University, Chennai progra Partici progra Partici progra Partici mmes • Krishi Vigyan Kendra, Kattupakkam, pants mmes pants mmes Pants

Chennai • Live stock Research Center, Potheri, 2003-04 19 593 52 1,670 71 2,263 Chennai 2004-05 55 2,399 31 1,119 86 3,518 • Madras University, Chennai 2005-06 38 1,374 83 3,077 121 4,451 • Institute of Public Health, Poonamalee, 2006-07 150 13,091 46 1,393 196 14,484 Chennai • Department of Agricultural Engineering, 2007-08 71 5,559 95 4,643 166 10,202 Chennai 2008-09 887 45,151 490 19,341 1,377 64,492

• Dr.M.S.Swaminathan Research 2009-10 1,495 71,582 372 17,826 1,867 89,408 Foundation, Chennai 2010-11 2,528 81,011 221 31,339 2,749 1,12,350 • C.P Ramasamy Research Foundation, 2011-12 Chennai (Up to 14 1,197 32 1,985 46 3,182 June 11) • Officers from the Sectoral Departments • Officers from the Rural Development and 7.2.10 Infrastructure Panchayat Raj SIRD has all the required infrastructure • National and State Quality monitors. for conducting training programmes effectively

SIRD also utilises the services of Best such as air conditioned conference halls, Village Panchayat Presidents, NGOs, and Library with reading room, Computer Lab with retired officials for training programmes as 25 computers of latest configuration with resource persons. Internet facility, fully renovated hostel for 130

141 142 participants with boarding facility, newly During the current year, thrust will be given in constructed hostel for 40 participants, Auto the following areas: genset (125 kva) and all the audio visual • equipments for conducting training Total Sanitation campaign • programmes. Rain Water Harvesting • Solar Energy • 7.2.11 Programmes for 2011-2012 Tamil Nadu Village Habitation Improvement Scheme (THAI) SIRD has proposed to conduct training • Comprehensive School Infrastructure programmes on various subjects for the Development Scheme Panchayat Raj representatives and • BRGF and RGSY training programmes for officers/functionaries on the following areas. elected representatives and Officials • Training programmes for Bharat Nirman • Panchayat Raj administration Volunteers in new blocks under Lab to • Accounts and Audit Land Initiatives • Establishment matters • Conduct of field training for the Under • Application of Computers Secretaries of the Central and State • Implementation of Centrally Government Departments Sponsored Schemes • Decentralized Planning. • State funded schemes • Disaster management programmes; 7.2.12. Projects on hand • Technical matters • • Social Audit The construction of the RTRC (Rural • Right to Information Act Technology Resource Centre) Building in • Decentralized Planning. SIRD campus is under progress.

143 144 • Proposal has been sent to the Ministry of providing Revolving Fund and Credit linkage to Panchayat Raj seeking financial assistance SHGs, Capacity Building, Youth Skill Training, for conduct of programmes for the PRIs promotion of Economic Activities, Marketing and others under RGSY. Support and formation of Panchayat Level • Proposal has also been sent to the Ministry Federations(PLF) of SHGs. TNCDW also of Panchayat Raj seeking financial implements the Swarnajayanthi Gram assistance for conduct of programmes for Swarozgar Yojana (SGSY), the Centrally the PRIs and others under Decentralised sponsored rural anti – poverty programme.

Planning. 8.1 Tamil Nadu Women’s Development Project (Mahalir Thittam) During 2011-12, it is proposed to Tamil Nadu Women’s Development conduct 2,879 training programmes, covering Project funded by International Fund for 2,41,746 participants at a cost of Agricultural Development (IFAD), initially Rs.19.12 crores, including 2,714 Off-campus started on an experimental basis during programmes to impart training to 2,31,890 1991-92 in Dharmapuri District was later participants at a cost of Rs.15.45 crores. extended to Salem, South Arcot, Madurai and 8. TAMIL NADU CORPORATION FOR DEVELOPMENT OF WOMEN Ramanathapuram Districts during the period from 1992-1994. During 1995-96, the project Tamil Nadu Corporation for Development started gaining wide acceptance among women of Women started in 1983, implements and was taken up as a model for future growth “Mahalir Thittam”, a scheme for empowerment and extended to all other districts in a phased of women fully funded by the State manner, targeting poor families and Government in partnership with NGOs and marginalised sections of the society as a State Banks. The activities under the project include funded programme. TNCDW became the focal formation of Self Help Groups (SHGs), point for women empowerment activities due to

145 146 its key role as the prime organisation and grooming them into full fledged community spearheading the SHG movement in the State. based organizations and further expanding the

A small homogeneous group of poor SHG coverage to habitations and ward/slums women consisting of 12 to 20 members, for in urban areas hitherto uncovered. their development voluntarily formed to So far, 452 NGOs have been affiliated promote savings and mutually agreeing to with TNCDW. The salient features of the NGO contribute a common fund to be lent to its agreement include performance based members as per the group’s decision is called incentive with greater emphasis on quality, as “Self Help Group” (SHG). The members apart from providing an enabling environment have to be in the age group of 18-60 years. for the growth of PLFs into Community Based The members and office bearers of the SHGs Organisations (CBOs). NGOs are paid formation promoted by Mahalir Thittam are provided cost, monitoring cost and also incentive for systematic training to bring about qualitative enabling SHGs to access bank credit by TNCDW changes in their attitude and to promote and are subjected to performance evaluation cohesion and effective functioning of the group. every year.

8.1.1 Role of NGOs 8.1.2 Activities of Mahalir Thittam

“Mahalir Thittam” is implemented in 1. Group Formation partnership with NGOs and community- based 2. Capacity Building organisations such as PLFs which are affiliated 3. Revolving Fund to SHGs to TNCDW, and extend support in the formation 4. Credit Linkage to SHGs of SHGs, organising training, guide and monitor 5. Youth Skill Training their activities. The future plans include, 6. Enterprise Development Training enhancing the sustainability of SHG movement 7. Restructuring of Panchayat Level through intensifying the federation activities Federation

147 148 8. Formation of Slum Level Federation The Table below gives the details of

9. Marketing support and sales SHGs formed so far. exhibition Details of SHGs

8.1.3 Formation of New SHGs No. of SHGs 4,91,311 The prime objective of this Government No. of SHG Members 76.60 lakhs is to extend its benefit to all the unreached population of the society and uncovered areas No. of Rural SHGs 3,32,092 of the state with special focus on widows, No. of Members in 51,77,028 destitutes, transgenders and other vulnerable Rural SHGs and marginalised sections. No. of Urban SHGs 1,59,219 During 2011-12, formation of 65,000 No. of Members in 24,82,654 new Self Help Groups will be taken up with a Urban SHGs special focus on women MGNREGS workers, Total Savings Rs.2,973 crores urban slum dwellers and in rural areas where No. of SHGs credit 4,51,248 poor women are still outside the ambit of SHG linked coverage. Special groups will be formed to Rs.11,603.83 Total credit specifically cover Transgenders, Differently crores abled, HIV positive individuals etc. All possible 8.1.4 Community Resource Persons (CRP) efforts to revive the defunct groups and include all women SHGs currently outside the purview As a measure of strengthening the Self of the Mahalir Thittam into its fold will be taken Help Group movement and to make it up, so that the intended benefits reach all poor community oriented, CRPs were developed and needy women. from among the SHG members. CRPs impart capacity building training to SHGs including

149 150 training of Social Audit Committee members of 8.1.6 Release of Revolving Fund to Self the MGNREGS and provide continuous hand Help Groups holding support to the PLFs. They also act as messengers for creating awareness among Revolving Fund (RF) is provided to SHGs SHGs on various Government schemes. who are in existence for at least six months and have passed the first credit rating. 8.1.5 Training for SHG members and Revolving fund will augment the group corpus Animator & Representatives and is used by the SHGs for internal lending for small income generation activities or as SHGs promoted by Mahlir Thittam and personal loans for health or education needs of Office bearers of the SHGs are provided with SHG members. SHGs have to make themselves systematic training in order to function as a credit worthy in the next six months to one cohesive group. All the SHG members are year to get loan for economic activity. So far, imparted training in 4 modules for 4 days. The 4, 47,081 SHGs have been provided with office bearers of the SHGs (Animator and Revolving fund. During this financial year, this Representatives) are given training in 3 Government will provide revolving fund to modules for 6 days. The main objective of SHG 42,214 SHGs with a subsidy of Rs.15,000/- members and Animator & Representatives each along with a bank loan of Rs.50,000/-.

Training is to enhance the leadership qualities, team building spirit and to build their capacity 8.1.7 Formation of Transgender Self Help to maintain books of account. A sum of Rs.45/- Groups is paid to each member as compensatory wage This Government will concentrate on the during the days of training. welfare of the transgenders who were hitherto neglected in the society. For the first time, the transgenders Self Help Groups numbering 100

151 152 will be formed by this Government. The increased to Rs.1 lakh to Rs.1.50 lakhs during transgender SHGs will be provided with the subsequent linkages. Repeat loans in the training, revolving fund and economic form of second and subsequent doses of credit assistance so as to improve their standard of linkages from the banks are essential for living. expansion and sustainability of the economic activity taken up by SHGs. 8.1.8 Loan with subsidy to Transgender SHGs Cumulative credit linkage to SHGs since inception accounts for Rs.11,603.83 crores. An As per the orders of the Hon’ble Chief ambitious target of Rs.4,000 crores has been Minister of Tamil Nadu, this Government will fixed as credit linkage for the year 2011-12. provide loan upto Rs.15 Lakhs with 25% subsidy to eligible transgender SHGs to start 8.1.10 Enhanced Economic Assistance for viable economic activity and thereby enhance SHGs their income and lead a respectable life in the In the past, the SHGs were provided society. with economic assistance under various schemes to a maximum of 5 lakhs with subsidy 8.1.9 Loans for Economic Activity through upto 50% of the project cost or a maximum of banks Rs.1.25 lakhs. This year, the Hon’ble Chief SHGs fall into the clutches of money Minister of Tamilnadu has ordered to enhance lenders and become indebted over a period of the quantum of loan under economic assistance time. Providing credit to SHGs through banks to the maximum of upto Rs.10 lakhs with at nominal interest rates for income generation subsidy of 25%. activities has led to economic empowerment of SHGs. Banks extend loan to SHGs, a minimum of Rs.50,000 is given as first linkage which is

153 154 8.1.11 Job oriented Youth Skill Training 8.1.12 Enterprise Development Training with assured placement (YST) Programme (EDT)

SHG members who are interested in Today, there is huge demand for skilled taking up economic activities particularly in manpower in the industrial sector particularly urban areas are trained through reputed in manufacturing and service sectors, due to institutions and so far 12,329 members have the industrial boom in the state. To exploit the been trained in various activities. opportunities offered by the growing economy and to make the unskilled and semi skilled During 2011-12, 4,000 women will be youth employable, Youth Skill Training given specific skill oriented training under EDT programme has been envisaged to impart by this Government. specific job oriented skills to improve their • Women in the age group of 18-60 years employability and make them competitive in belonging to Self Help Groups in Urban the job market to get gainful employment. So Areas are eligible, but preference will be far 93,762 youth have been trained in various given to those above the age of 35years vocations and 60,408 youth have been placed and below 50 years. in various firms, excluding those who are self • Stipend including conveyance charges is employed. fixed at Rs.25/- per day per trainee During 2011-12, greater impetus will be • Selection of trade and institution are given by this Government to Youth Skill decided by the District Level Committee Training programme by imparting training to based on the choice of courses by women. 25,000 youth at a cost of Rs.20 crores. • EDT training is given through reputed / recognized institutions specialized in giving self employment training with sufficient faculty support – like procurement of raw

155 156 materials, machinery, value addition, also form and train new SHGs in rural areas. packaging, labeling, pricing, standards, Strong and cohesive PLFs representing the certification etc., common aspirations of its member SHGs is the • The trained women are provided with key for achieving sustainability in the long run. assistance to get loan from nationalized • banks to establish production units. Capacity building of office bearers, • State and District level exhibitions are providing seed money and giving awards organized to popularise SHG products and to best PLFs pave the way for enhance their market share. strengthening PLFs. Restructuring of PLFs with the objective of making them more 8.1.13 Panchayat Level Federation of inclusive, transparent and participatory SHGs (PLFs) and also to improve their governance and sustainability is very important. In order to strengthen the SHG • In the State, till now 7,646 PLFs have been movement and make it sustainable federations restructured out of 12,618 PLFs. During of SHGs at Village Panchayat, Block and District 2011-12 a total of 4,972 PLFs will be level are formed. restructured and further strengthened by this Government by providing capacity PLF is a participatory platform for the building to the office bearers and members SHGs to share their experiences, voice their of both Panchayat Level Federations and problems and find collective solutions. What Habitation Level Forums (HLF) on individual SHGs could not achieve, PLF can Governance and Finance Management achieve by pooling their collective skills and modules. TNCDW will provide greater resources and exploiting economies of scale thrust towards capacity building of the PLF both in production and marketing. PLF can also members and office bearers in areas like guide and monitor the functioning of SHGs and

157 158 Social Audit, Identification of business 8.1.15 Bulk Loan to Panchayat Level opportunities, Value addition etc. Federations • PLFs are graded after the completion of six months against predetermined fixed One of the primary roles of PLF is indicators covering participation, inclusion, financial intermediation. Over a period of time, governance, transparency, credit discipline PLFs will evolve into community level financial and community development initiatives. institutions. PLFs who emerge successful after grading become eligible for financial linkage 8.1.14 Incentive to Restructured PLFs and can access bulk loan from the Banks and on-lend it to its members. On a pilot basis, in An incentive of Rs.1 lakh is provided for few districts bulk loans were sanctioned to the each successfully graded PLF to encourage the restructured PLFs. The experience of these PLFs functioning of the PLFs. So far 2,825 show, that PLFs could avail bulk loan from the successfully graded PLFs have been sanctioned banks, on lend the amount to member SHGs an incentive of Rs.1 lakh each. The interest and repay the loan with interest to the Banks accrued from the incentive fund is used by PLFs without any default. So far 300 PLFs have for administrative expenses. been provided with a bulk loan of Rs.73.48 crores by various Banks. During 2011-12 focus During 2011-12, 3,000 eligible PLFs will of this Government will concentrate on linking be sanctioned with an incentive of Rs.1 lakh 400 PLFs with bulk loan. each at an allocation of Rs.30 crores .

8.1.16 Awards to best PLFs and SHGs

In order to motivate and encourage the SHGs and PLFs, the Government will give awards at State and District level. Awards are

159 160 presented to 5 best PLFs and 10 best SHGs at District level, one bank and 3 bank branches the State Level. One best PLF and 3 best SHGs will get the award. at the District level are given awards and one 8.1.18 Issuing Identity Cards to SHGs best SHG at the Block level is given a certificate. The awards have occupied a place SHGs face a lot of problems and hardship of pride among the SHGs and have been during their interface with banks, government instrumental in motivating the SHGs and PLFs offices and other institutions. An ID card will to aim for better performance. help SHGs to gain recognition in society and also have easy access to Government offices 8.1.17 Awards to Bankers and Banks. The ID card will contain group details such as savings, credit rating status, Banks are the most important partner of loans as well as member details. The ID cards TNCDW for the economic empowerment of also prevent duplication of members in more women, who are extending credit to the SHG than one group. Action will be taken by this members for debt swapping, consumption government to issue ID cards to all functional needs and for productive purposes. A state and eligible Self Help Groups in this financial level and district level award will be given to year. honour best performing banks and individual bank branches, which have shown outstanding 8.2 Swarnajayanti Gram Swarozgar performance in extending credit linkage to Yojana (SGSY)

SHGs. These awards will motivate the Swarnajayanthi Gram Swarozgar Yojana outstanding performers and also create a (SGSY), introduced in April 1999 by the healthy competition among the Bankers. Government of India and implemented by the

At State level, 3 best performing banks State is a major anti-poverty programme with and 5 bank branches are given award. At the main objective of bringing the poor families above the poverty line by ensuring

161 162 reasonable and sustained level of income over a period of time. SHG approach is adopted to In 2011-12, a sum of Rs.135.25 crores is reach poor women and aims to graduate them to be allocated for the implementation of the from micro credit stage to micro enterprises scheme with a credit target of Rs.284.10 stage. This is planned to be achieved through crores. In order to implement the scheme in a skill development training, bank credit, more purposeful manner, the following infrastructure facilities including marketing initiatives will be undertaken in 2011-12. support to the products produced by them.  A sum of Rs.33.32 crores will be Government of India and the State provided for the subsidy component of Government are sharing the cost in the ratio of Revolving fund to 22,214 eligible SHGs 75:25. in rural areas.

 7,464 SHGs will be provided with 8.2.1 Components of SGSY economic assistance.

1. Providing Revolving Fund to SHGs.  Greater emphasis will be laid to 2. Providing Economic Assistance to encourage SHGs to opt for key SHGs activities that are suitable for cluster 3. Qualitative Skill Development Training formation at Block/District levels. through reputed institutions  Qualitative skill development training 4. Infrastructure Development through reputed institutions will be 5. Training imparted to 22,214 SHG members at a cost of Rs.7.77 Crores To ensure greater convergence of  4,860 Individual swarozgaris are to be activities taken up for the benefit of SHGs in economically assisted at a cost of the State, supervision and monitoring of SGSY Rs.5.832 crores scheme has been entrusted to TNCDW.

163 164 8.2.2 Marketing of SHG Products During 2011-12, 2 State level, 64 District level and 130 Block level exhibitions are planned. SHGs do not have adequate capacity in understanding marketing issues and do not 8.2.3 Branding and Packaging of SHG possess negotiation skills to promote their products products. Therefore, this Government will take various initiatives to enhance the capacity of SHG products, though of good quality SHGs and PLFs and ensure better convergence and priced reasonably are not able to capture a and greater co-ordination between different considerable market share due to not having a agencies in promotion of SHG products. common brand and less attractive packing. During the year 2011-12, TNCDW will rope in A State level permanent marketing training institutions who will enhance the complex for SHG products is functioning in capacity of Marketing skills of SHGs, NGOs and Annai Theresa Women Complex, officials at District level and also identify a Nungambakkam, Chennai for conducting state level nodal agency to develop a brand exhibition cum sale of products produced by with attractive design for packaging of SHG SHGs. Similarly, to create better marketing products. A five year plan for state and district facilities in rural areas, 86 Village Haats are level business development for SHG products under construction at the cost of Rs.12.90 will be prepared.

crores in 30 districts and will be completed during this year. 8.3 Tamil Nadu State Rural Livelihood Mission (TNSRLM) To expand the market of SHG products in urban and semi-urban areas, a calendar of Government of India have announced a exhibitions has been prepared to conduct new scheme called National Rural Livelihood exhibitions at State, District and Block levels. Mission by restructuring the existing SGSY scheme. This scheme will be implemented by

165 166 this Government in the name of Tamil Nadu 8.4 Major activities proposed for 2011-12 State Rural Livelihood Mission during 2011-12. 1. To improve the economic status of women, TNSRLM aims at universal mobilization of credit assistance for economic activity up BPL households into SHGs, promotion of SHG to Rs.10.00 lakhs will be provided to federations at Village, Block and District level, eligible SHG with subsidy upto 25%. untied fund flow to federations of SHGs for 2. Special focus will be given to the formation on-lending to member SHGs as well as of Transgender Self Help Groups and credit employment linked skill development training assistance for economic activity upto Rs.15 for rural youth. Lakhs will be given to eligible groups to improve their livelihoods. The programme, a major improvement 3. 65,000 vibrant SHGs will be formed in upon SGSY lays greater emphasis on the rural and urban areas. Importance will be livelihood and marketing aspects of the rural given to left out /uncovered areas and people. The programme follows a demand habitations where poor women are not driven strategy based on participatory enrolled in SHGs. Special SHGs will also be processes. TNSRLM seeks to mobilize the rural formed with marginalized communities, poor to build institutional platforms that are differently abled and vulnerable self managed. These institutional platforms in population. the form of groups, federations and producer 4. Revolving fund subsidy of Rs.15,000/- collectives access a variety of financial and each will be provided to 42,214 SHGs technical services including TNSRLM and also (Rural 22,214 and Urban 20,000) with an resources from the Government programmes allocation of Rs.63.32 Crores. The credit and Banks. amount will be mobilized through the Banks.

167 168 5. An amount of Rs.4,000 Crores will be the project cost with a ceiling of arranged as credit to the SHGs through all Rs.1.25 lakhs. SHG – Bank linkage activities to facilitate 10. Tamil Nadu State Rural Livelihoods economic empowerment of the SHG Mission (TNSRLM) will be launched this members. Emphasis will be given to needy year and highly intensive efforts at 60 SHGs after identifying credit needs and blocks in 15 Districts will be taken up with gaps. the assistance of National Rural Livelihood 6. To further strengthen the restructured Mission (NRLM) / National Rural livelihood Panchayat Level Federations, 3000 Project (NRLP) (75% Government of India successfully graded PLFs will be provided and 25% Government of Tamil Nadu) an incentive of Rs.1.00 lakh each.

7. 300 new Slum Level Federations will be 9.WORLD BANK AIDED PUDHU VAAZHVU formed and 150 successfully graded SLFs PROJECT

will be provided with an incentive of Rs.1.00 lakh each to strengthen them. 9.1 About the Project

8. Youth Skill Training will be imparted to This Project was launched in the State 25,000 Youth in various vocations through in November 2005 as “Pudhu Vaazhvu” by the reputed training institutions who provide present Hon’ble Chief Minister of Tamil Nadu. immediate placement for the trained The Pudhu Vaazhvu Project (PVP) was youth. subsequently named as “Vazhndhu

9. Under Swarnajayanti Gram Swarozgar Kaattuvom” in 2006, has now been restored Yojana (SGSY) 7,464 rural SHGs will be back to its original name of “Pudhu Vaazhvu”. provided economic assistance with The project is being implemented in 16 maximum eligible subsidy being 50% of districts with a total outlay of Rs.717 crores, benefitting 5.8 lakh households for a period

169 170 up to September 2014. Now with additional • Building downward responsiveness, financing, the Project has expanded its accountability and transparency at all operations to 10 more additional districts for levels. a period of 3 years till September 2014 with an outlay of Rs.950 crores benefitting 3.8 9.2 Additional Financing for Project lakh target poor households. Expansion

The Project is designed on Community The Project implementation was taken up Driven Development (CDD) approach to in a limited number of Blocks in the State to empower the poorest of poor through demonstrate the Pudhu Vaazhvu Project (PVP) promotion of strong Community-Based model and the efficacy of the CDD approach. At Organizations (CBOs), thereby creating a present the Project is being implemented in strong voice for rural poor, especially women 2,509 Village Panchayats spread over 70 Blocks in community decision making and in shaping in 16 Districts. This covers only 20% of the developmental endeavours, adopting the Village Panchayats and 18% of the Blocks in following key elements: the State. The success of the Pudhu Vaazhvu

Project has encouraged the expansion of this • Transferring the control over decision model to few most backward districts. making and resources to the community based organizations. The Project has identified 10 additional • Focusing on the poorest of poor, the Districts and the number of Blocks in these most vulnerable and differently abled. Districts that deserve intervention is 46. Four • Establishing strong linkages with more additional Blocks in the existing Project Panchayat Raj Institutions districts have also been included for coverage • Providing employment generation which makes the total number of new Blocks to opportunities and livelihood 50 apart from the existing 70 Blocks which are enhancement. in operation to benefit 3.8 lakh households.

171 172 9.3 Project Coverage Project Funding – Ongoing Project Areas

With the inclusion of new project areas, Rs. in Source Percentage the Project will now be implemented in 120 crores Blocks out of the total 385 Blocks, which is World Bank 541 75 approximately one third of the Blocks in the (IDA) State. The project period is now being Govt. of TN 122 17 extended from September 2011 to September Community 54 8 2014. Total 717 100 The total number of Districts covered, existing and new Blocks for Project intervention Project Funding – New Project areas and the details of Panchayats proposed to be covered are given below : Percent Source Rs. in crores age 9.3.1 Existing Project World Bank (IDA) 760 80

Govt. of TN 132 14 No. of Total No. No. of Target Community 58 6 No. of households Project of HHs Blocks (HHs) Total 950* 100 VPs covered(lakhs) (lakhs) *includes Rs.222.85 crores for existing areas and On 70 2,509 16.97 5.8 Rs.727.15 crores for new project areas . going

New 50 1,661 11.24 3.8 Project Total 120 4,170 28.21 9.6

173 174 9.4 Institutional Structure 9.5 Project Cycle

There is a State level Institutional set up The various activities in the project are that includes the State Society and the State summarized in the project cycle as follows.

Unit headed by Project Director and a multi- Activities in New Areas

disciplinary team of experts and support staff 1. Start up and promotional activities to supervise the implementation of the Project. 2. Institutional development To cope up with the expanded mandate and to 3. Livelihood development cover new project areas under the PVP, Activities in Existing Areas additional posts are being created. 4. Consolidation of intra - village activities The responsibility for guiding and 5. Inter-village institutional development facilitating the Project implementation will be 6. Inter-village livelihood development that of the District level Society with a multi- 7. Self reliance functional team as operational unit. [Additional details given in Annexure] At the cutting edge a 5 member Project

Facilitation Team is constituted at the cluster 9.5.1 Start up and Promotional Activities level to cover 10-15 Village Panchayats to provide close handholding support to the 1. Intensive Communication Campaign is village institutions. taken up initially in all project villages in a systematic manner to propagate At the Village Panchayat level, the Village information about the vision, objectives Poverty Reduction Committee (VPRC), an and strategies including role and inclusive and autonomous body of the target responsibilities of each stakeholder during poor is vested with the responsibility of Project the various stages of Project implementation.

implementation.

175 176 2. Self Help Groups are basic institutions of 2. The community themselves are engaged the poor at village. The SHGs formed in identifying the poorest of the poor, under the Project are from among the marginalized and differently abled who left out target poor. Tribal SHGs and form the target beneficiaries using the special groups for differently abled are Participatory Identification of Poor (PIP) also promoted. methodology along with other tools like 3. Panchayat Level Federations are social mapping and wealth ranking. This specialized financial Institutions that method has ensured not only render both financial and non financial transparency in the process of services with good customer services, identification of target beneficiaries, but minimal administrative costs and also wide acceptance and ownership of effectively reach poorest of the poor the project processes and outcomes. households. 4. Common Livelihood Groups are formed 9.5.2 Institutional Development Activities predominantly at village level around small livelihood activities aggregating 1. Community based organizations like similar individual activities and providing Village Poverty Reduction Committees them support services, common (VPRCs), Social Audit Committees procurement, marketing facilities etc. (SACs), Self Help Groups (SHGs),

Common Livelihood Groups (CLGs) and 9.5.3 Livelihood Development Activities Panchayat Level Federations (PLFs) are The overall goal of the livelihood approach is developed, strengthened and increased household income, assets and well capacitated. being of the target poor in such a way so as to

get sustained income flow through livelihood

177 178 protection and livelihood promotion strategies. common infrastructure facilities, market To achieve this, the following approaches are support, technology, value chain analysis followed: and risk coverage.

1. Providing an enabling environment 9.5.4 Consolidation of Intra – Village involving increased accessibility to credit Activities addressing issues of timely and inadequate financing. All the activities hitherto carried out are 2. Job oriented skill training for enhancing confined to the village Panchayat level. The employability, along with creation of stage has now come to intensify the activities employment opportunities in Corporates that the primary Community Based and MNCs through placement. Organizations at village level are engaged in. 3. Support to Individual livelihood activities To sustain the achievements made so far, by identifying local livelihood specific enrichment measures will be opportunities and intervention strategies undertaken in the form of deepening project and exploring market feasibilities activities with concrete additional interventions including demand and risk mitigation in order to facilitate the CBOs to manage by measures. These individual livelihoods themselves and take over the reins from the are promoted through small loans from project after its exit. VPRCs, PLFs and any other credit The project would also through assistance that the individual would get convergence mobilize resources, inputs, either through external or internal expertise, knowledge etc., from sources. other Government departments/agencies/ 4. Graduating individual livelihoods to institutions. For this, there will be Block level/ Common Livelihood Group activities and District level and State level convergence Economic Activity Federations, providing

179 180 teams working in close liaison with the generation institutions would provide Community Based Organizations promoted by facilitation, handholding and sustainability even the project to forge strategic partnerships with after the project withdraws, to provide line departments and other organizations. continuity and meet emerging demands of the community even after the project exit. The project would extensively use the social capital in the form of Community These institutions would be either at Professionals. Their proficiency would be inter-village level, cluster level, Block level or capitalized at length, utilizing their knowledge, district level and are formed with the following expertise and skills gained from their field key objectives: experience for wider use by the community themselves, various departments and agencies. 1. To strengthen the primary community All districts have institutionalized Community institution of the villages and ensure that Professionals in the form of Community these institutions give quality service to Professional Learning and Training Centers the target people. (CPLTC-MAGAMAI). 2. Sustainability of the success achieved by Primary institutions for their inclusive 9.5.5 Inter-Village Institutional growth beyond the project life. Development 3. To identify and promote collective efforts in livelihood and provide necessary Developing and Promoting Second Level infrastructure, equipments, technical Institutional Federations, Community assistance and linkages for adding value Professional Learning and Training Centers and to livelihoods adopted by the target Economic Activity Federations to provide community. support and guide the first Generation 4. To find appropriate solutions to emerging institutions like SHGs, PLFs, etc. These second inter village issues including conflicts.

181 182 5. For ensuring regular interaction with up in the value chain and harness the benefits financial institutions, dissemination of of sustainable markets.

livelihood information, easy access to 9.5.7 Village Self- Reliance continuous credit and insurance support. Village self reliance aims at intensifying 9.5.6 Inter –Village Livelihood Development project activities at village level by strengthening and sustaining the inter- village Efforts will be taken up to complement level activities. The exit strategy will be built and maximize the livelihood activities promoted for maximizing the impact of poverty reduction so far including scaling up. This would help initiatives as well as equipping the community achieve economies of scale through at every level of project intervention to carry aggregation and federations looking beyond forward the project principles and strategy both village level to inter-Village livelihood activities. at intra-village and inter-village level. The project also demands more focused interventions to promote sustainable livelihoods The higher level community based through higher level federations aggregating organizations would support sustainable and the group activities. cost effective service provision, capacity support and handholding support beyond the The livelihood federations would look project period. Strengthening and sustaining after higher level activities of Common these higher level institutions and ensuring Livelihood Groups. The livelihood federations smooth transition by handing over the project thus promoted would provide support services facilitation part to the community would be one like sharing information, linkage provision, of the key features underpinning this phase of technical assistance, common procurement and project cycle. marketing including opportunities for moving The efforts taken up by the project to improve the standard of living of the target

183 184 beneficiaries, focuses exclusively in making 9. Livelihood corpus fund Rs.127.92 Rs.133.67 released. crores crores the community self reliant, self managed, self 10. Common Livelihood Groups 1,849 2,344 monitored and self propagative in all aspects formed setting a trail blazer. Non- Project Fund Achievements

9.6 Project progress 11. Newly formed & differently 17,394 18,022 The important accomplishments of the abled SHGs received Revolving Fund Project are as follows: 12. Amount of first dose of credit Rs.101.54 Rs.108.67 crores crores 13. SHGs given second dose of 5,254 5,666 As on As on Sl.No. Activities credit 31.3.2011 31.07 2011 14. Amount of second dose of Rs.68.68 Rs.74.72

credit crores Crores Project Fund Achievements 15. Differently abled received 6,459 8,075

maintenance grant through 1. Participatory identification of Fully Fully project intervention poor and list approved by completed completed 16. Differently abled persons 14,081 15,014 Grama Sabha. received aids and appliances 2. Village Poverty Reduction Fully Fully 17. Aged persons received old age 52,914 56,765 Committees formed completed completed pension through project 3. SHGs formed among women 14,688 14,846 intervention. and youth. 4. SHGs among the differently 7,877 7,962 abled 9.7 Financial Performance 5. Differently abled and 1,50,039 1,58,826 vulnerable given financial assistance to start livelihood Till 31.3.2011 the expenditure incurred activities under the Project from inception is Rs.589.19 6. Youth given job oriented skill 1,44,733 1,57,661 training crores under the existing project. 7. Youth gainfully employed 1,02,979 1,21,553 8. Panchayat Level Federations 2,335 2,367 restructured

185 186 From 1.4.2011 to 31.7.2011 the minds of the coastal communities and they expenditure incurred under the Project is became resilient from the effects of Tsunami. Rs.51.83 crores under the existing project and new project areas. Tsunami Project Implementation Unit (TPIU), a wing of Rural Development and A sum of Rs.315.11 crores has been Panchayat Raj Department was established on provided in the Budget Estimate for the year 01.08.2005 to monitor and implement the 2011-2012 for both existing and new Project Tsunami Rehabilitation Projects entrusted to areas. this Department in 12 coastal districts. The

following projects were/are implemented by the 10. TSUNAMI REHABILITATION TPIU. PROGRAMMES

An unprecedented natural disaster called 10.1 Tsunami Emergency Assistance Tsunami suddenly and severely hit the coastal Project (TEAP) th stretch of Tamil Nadu on 26 Dec.2004 and caused heavy damages to the lives, livelihoods The Tsunami Emergency Assistance and infrastructure of the coastal communities. Project with financial assistance of Asian However, the Government of Tamil Nadu by Development Bank (ADB) was taken up on mobilizing all its energies, took strenuous 06.04.2005. The objective of this programme efforts to provide immediate relief and was to revive the Livelihoods of the Tsunami rehabilitate the Tsunami affected people and affected people and to restore their damaged brought them back to normal life within a short infrastructure in 12 coastal districts namely period. Because of the effective initiatives of Tiruvallur, Kancheepuram, Villupuram, the Government, confidence was instilled in the Cuddalore, Nagapattinam, Thanjavur, Tiruvarur, Pudukottai, Ramanathapuram,

187 188 Thoothukudi, Tirunelveli and Kanniyakumari. 10.2 Rajiv Gandhi Rehabilitation Package Total expenditure of this project (RGRP) was Rs.292.50 crores. Two important components had been taken up and completed Rajiv Gandhi Rehabilitation Package as given below: (RGRP), funded by the Government of India as grant was started in 2006 and implemented by • In the Livelihoods component, 2,70,308 the Tsunami Project Implementation Unit at an beneficiaries were assisted with an estimated cost of Rs.716 crores. expenditure of Rs.183.23 crores in 12 The project consists of the following coastal districts. This included economic components namely: and revolving fund assistance to the Self

Help Groups, grant to the disabled 10.2.1 Construction of houses in the NGO persons, assistance to the fishermen backed out sites and provision of societies, training to the youth, coastal basic amenities communities and women, creation of

awareness on sanitation and construction 2,687 houses that were backed out by of various community infrastructure etc. the NGOs in 5 districts namely Nagapattinam, This component was implemented with Thoothukudi, Villupuram, Kancheepuram and grants from ADB. Tiruvallur were taken up under RGRP at an expenditure of Rs.63.75 Crores and all the • In the Rural infrastructure component, houses were completed. In these housing sites, 821 works such as BT roads, Public 3,009 works relating to the basic amenities buildings and Direct paddy procurement such as cement concrete roads, water supply, centres were taken up and completed street lights, house service connection, land with a loan assistance of Rs.96.27 crores filling, public buildings etc., were taken up and from ADB. completed at an expenditure of Rs.8.04 crores.

189 190 10.2.2 Basic amenities in the NGO an expenditure of Rs.454 crores and occupied constructed housing sites by the beneficiaries. The project is pending in Pudukottai District only where 1,080 houses Similarly, in the sites where NGOs are in progress and will be completed early. constructed houses with their funds, 32,301 works pertaining to basic amenities such as In these housing sites, basic amenities cement concrete roads, sanitation, land filling, such as cement concrete roads, street lights, street lights and house service connection etc. water supply, black topped roads, cremation were taken up and completed at an sheds, public buildings, sanitation and expenditure of Rs.54.27 crores. drainages etc. have been provided. 3,246 works of basic amenities were taken up and 10.2.3 Reconstruction of vulnerable completed at an expenditure of Rs.56.67 houses and provision of basic crores. amenities From the savings amount under RGRP, The vulnerable houses lying between 0– 138 additional works related to basic amenities 200 mtrs from the High Tide Line (HTL) and 10 have been taken up in July, 2010 at an year old houses that were constructed under estimated cost of Rs.7.86 crores and so far 70 Indira Awaz Yojana and Singaravelar works have been completed at a cost of Fisherman Housing Scheme as on 01.01.2006 Rs.3.00 crores. The remaining works are in and located within 1000 mtrs from HTL were progress and are planned to be completed by taken up for reconstruction. December, 2011.

In 11 coastal districts, 18,299 houses were taken up at a cost of Rs.499 crores and so far 17,219 houses have been completed at

191 192 10.3 Emergency Tsunami Reconstruction 10.3.1 Reconstruction of vulnerable Project – Vulnerability Reduction of houses Coastal Communities Project (ETRP- VRCCP) 15,056 vulnerable houses lying between 200 Mtrs to 1000 Mtrs from the High Tide Line This project was originally started in (HTL) were identified by the Revenue 2005 with the loan assistance of the World Department and revalidated by the NGOs Bank (G.O.(Ms.) No.384, Revenue NC.4(1) (Third Party facilitators appointed for this Department, dated 01.07.2005). This project is purpose) for reconstruction in 11 coastal a component of the programme of recovery districts (except Tiruvarur). These houses were and reconstruction implemented by the State grouped into 157 packages. After finalizing the Government to mitigate the impact of the tenders in the Phase-I (May-July,2010) 61 Tsunami. The project was expected to be packages containing 5,619 houses and in completed by October, 2007. Phase-II (Aug-Oct,2010) 96 packages containing 9,437 houses were taken up for But, due to prolonged procedures in the reconstruction. Out of these 15,056 houses subsequent period, this project commenced in identified, 14,385 houses were found eligible Dec.2009 only with a project outlay of about and construction is in progress. Rs.670 crores and the project period has been fixed upto 31.12.2011. The ETRP-VRCCP has 10.3.2 Provision of Shifting Allowance two important components, namely and monthly Rent Allowance reconstruction of vulnerable houses and provision of evacuation routes with signage. The period of construction for these houses has been fixed as 15 months. Till the completion of these houses, the beneficiaries are provided an one time shifting allowance of

193 194 Rs.1,000/- and a rental allowance of Rs.500/- per month for 15 months. 10.3.3 Construction of Evacuation routes with Signage Provision up to Rs.1,000 has been given for insurance coverage of these new houses During the emergency times such as against the natural calamities. cyclones, storms, Tsunami etc., to provide easy and quick access to the coastal communities to 11 NGOs, based on their performance reach safe shelters, the construction of have been selected as third party facilitators to evacuation routes with signage boards along create awareness among the beneficiaries, to the coastal areas has been taken up under this train them in the quality aspects of houses and project, at an estimated cost of Rs.65 crores. to nurture a sense of ownership of their new This component is to be implemented in 12 houses. coastal districts. Estimates and designs are being finalized by a private consultant engaged A grievance redressal mechanism has for this purpose by the World Bank. So far, also been established at the district and village estimate proposals for evacuation routes for a levels. The District Level Monitoring Committee length of 64 km at a cost of Rs.35.53 crores is headed by the District Collector with the have been submitted by the consultant. Works members including Project Co-ordinator, will be commenced soon. District Implementation Unit, DRO(R&R),

Tahsildar, EE, NGO, BDO, etc. The Village level Grievance Redressal Committee is headed by the Village Panchayat President which includes the Vice President, VAO, Project Engineer, One women member and SC/ST member of the Panchayat and a NGO representative.

195 196 11.INTERNATIONAL FUND FOR 11.1.2 Target Group

AGRICULTURAL DEVELOPMENT Coastal dwellers (in villages directly or (IFAD) ASSISTED POST-TSUNAMI indirectly affected by the tsunami) including: SUSTAINABLE LIVELIHOODS

PROGRAMME (PTSLP) IN TAMIL i. coastal fishers using beach launched NADU craft;

11.1 Goal and Objective of PTSLP ii. wage labour employed in the fisheries

The goal envisages building self-reliant and agriculture sectors; coastal communities, which are able to manage iii. small-scale women fish vendors and their livelihoods in a sustainable manner. This processors; would be achieved with the objective of iv. small and marginal farmers; developing viable enterprises and resource v. other marginalized occupation groups management systems, owned and operated by (e.g. seashell workers); and women in the region affected by the Tsunami vi. very poor and poor, identified through and supported by the community and other Participatory Rural Appraisal exercise. appropriate institutions. 11.1.3 Programme Components 11.1.1 Project details (i) Coastal Area Resource Management Period 8 years (2007-2015) (a) Community Support Cost Rs.283.69 crores Community Support is provided through Programme Districts Thiruvallur, Kancheepuram, Villupuram, Cuddalore, Cluster Resource Centre (CRCs) which is a Nagapattinam & Kanniyakumari group of coastal Panchayats. In the Project

Project area 109 Panchayats in 25 Blocks area 30 Cluster Resource Centres have been

Coverage 1.55 lakhs Households established by Facilitating NGOs (FNGOs). About 6 lakhs population Three staff for each Cluster Resource Centre

197 198 viz., a Cluster Coordinator, Facilitator & Resource Management. The project promotes Business Promoter have been recruited. The responsible safe fishing practices. Creating Cluster Resource Centre provides support to awareness through workshops on the local community in implementing the environmental impact, diversifying fishing project activities. operations etc are other important activities that are being undertaken. (b) Community Resource Planning 11.1.4 Rural Finance and Risk Transfer The Cluster Resource Centre personnel Instruments aid the community in a Participatory Resource Mapping exercise, which identifies and prioritize (a) Micro credit for SHGs the infrastructure needs of the community. Training to SHG members are given to Infrastructure Micro Plans for implementation identify Income Generating Activities and bank are developed based on the Participatory Rural linkages are facilitated by the Cluster Resource Appraisal (PRA) which also reflects Centres. environmental and gender concerns and also Livelihood options. The District Implementation Office (DIO)

The Programme makes available funds to in coordination with Cluster Resource Centres the community for implementing the Micro conduct sensitization workshops to the bank Plans, 10% of which are contributed by the staff and financial institutions. Exposure visits community by way of cash. are arranged for the bankers, to understand the importance of timely credit assistance.

(c) Fisheries Resource Management

The expertise of specialist Organizations in the fisheries sector are utilized in Fisheries

199 200 (b) Risk management and Insurance 11.1.5 Employment Generation and Skill

The District Implementation Offices Training

(DIOs) arrange workshops to discuss the risk (a) Support to SHGs management needs of the fishing community. For this Vulnerability Reduction Fund is set up A Structured Survey to assess the status which extends soft loans at the time of of Self Help Groups, NGOs and Federations was disasters. This fund is administered by PLFs of undertaken, which indicated areas of weakness which the project contribute 4/5 the share and and has suggested measures to strengthen the balance 1/5 share by the community. them. The Facilitating NGO, through the Workshops on insurance help the community to Cluster Resource Centre personnel undertake decide on suitable insurance products. Self Capacity building training of weak Self Help Help Groups and the members of fish Groups, promote credit linkages and formation marketing societies are given training on of Federations. insurance. (b) Formation of Fish Marketing Societies (c) Establishment of Venture Capital Fund The Programme Management Unit (PMU) This Fund would supplement the loans has entered into an agreement with South from banks to Self Help Groups and fishermen Indian Federation of Fishermen Societies societies. The fund will be managed by a (SIFFS) through a Memorandum of professional Financial or Business Understanding (MoU) for setting up of Fish establishment that has necessary skills to Marketing Societies, limiting membership to provide support for the enterprises to become owners of small crafts, Kattumarams and successful. The establishment would be Vallams. South Indian Federation of Fishermen selected through procurement procedures laid Society is also given grants to finance loan down by IFAD. redemption of fisher folk. The Programme

201 202 Management Unit examines proposals 11.1.6 Community based Sea Safety and submitted by South Indian Federation of Disaster Management Fishermen Societies for Out Board Motor (OBM) repair centres and give clearances. Training sessions have been organized for fishermen on sea safety measures. (c) Vocational Training Workshops were conducted utilizing subject

The Resource NGO (RNGO) identifies experts to create awareness on the various viable trades which can be taken up for measures available for ensuring Sea Safety Vocational training by the youth and identify (Communication aids, life saving techniques suitable institutes and organizations for etc). training. The RNGO specify the courses offered, duration, cost in terms of scholarship, Technical experts are engaged in stipend etc. The Cluster Resource Centres ascertaining the need to educate school coordinate the receipt of applications, 25% of children on disaster management. Workshops those trained should be women. are also conducted to evolve resource material and curriculum on environmental education in (d) Micro Enterprise Development Primary Schools. Teachers have been trained

Technical specialists / reputed on these materials and they were involved in organizations / institutes are engaged in conducting workshops for school children. conducting district wise sub sector studies and Developing, Printing and dissemination of analysis. The Programme Management Unit in resource material, its periodical review and partnership with Non-Government presenting awards to model schools are part of Organizations (NGOs) / organizations that have this component. experience in development of micro enterprises work to develop a cluster of enterprises in the identified sub sector.

203 204 11.2 Organizational Arrangements for Component wise: Implementation (Rs.crores) Sl. No. Component Amount Percentage Level Unit Guided by 1. Coastal area Resource 41.16 14.51 Management State Programme Management Programme Steering 2. Rural Finance and Risk Unit with Tamil Nadu Committee (PSC) headed by 159.50 56.23 Transfer instruments Corporation for Principal Secretary, Rural Development of Women Ltd Development and Panchayat 3. Employment generation 66.31 23.37 as Nodal Agency. Raj Department. and skills training 4. Community based sea District District Implementation District level Implementation safety and disaster 1.80 0.63 Office advisory committee (DLIAC) management headed by Collector. 5. Programme Management 14.92 5.26

Village Cluster Resource Centre Cluster Advisory Committee Total 283.69 100.0 (CAC) consisting of representatives of Panchayat ACTIVITY-WISE PROGRAMME COST Raj Institutions, Non- (Rs. in thousands) Government Organizations, Traditional Institutions etc. % to total S. No. Component Amount Base Project financing: Cost

Agency wise: A. Coastal Area Resource Management (Rs. in crores) 1. Community Resource Planning (Capacity 11,800 Building) Sl. No. Agency Amount Percentage 2. Community Support (Establishment of 1,07,802 4 1. IFAD 132.32 47 CRCs)

2. Govt. of Tamil Nadu 12.00 4 3. Fisheries Resource Management 27,500 1 (Workshops, studies & pilot initiative Bank / Micro Finance 3. 100.61 35 Fund for improve fisheries management) Institution 4. Community Infrastructure Fund 2,64,500 9 4. Beneficiary Contribution 38.76 14 Sub Total 4,11,602 14 Total 283.69 100

205 206 4. Micro Enterprise Development (sub- 2,06,855 7 B. Rural Finance & Risk Transfer Instruments sector survey, studies, BDS support, Technology pilots, technical Assistance – 1. Venture Capital Fund 36,000 1 Overseas Trainers,trainings &workshops) 2. Support for banks & MFIs (Establishment 12,120 5. Vocational Trainings (Review, support 85,075 3 of district offices of MFIs, training & for vocational trainings, fishing skill workshops for bank & MFI staff) development – training & workshops) 3. Risk Mitigation (Insurance investigations 39,170 1 Sub Total 6,63,088 24 & pilots, contribution to disaster management fund by Project & SHGs, D. Community Based Sea safety & Disaster management insurance training for SHG members) 1. Promotion of sea Safety (Feasibility 3,000 4. Product development & innovations 11,000 study in a district, cell phone subsidy, (Product development for ME financing – training & publicity) support to MFIs, studies & exposure) 2. Support for coastal school (Need 15,000 1 5. Incremental credit Fund (Banks & MFI 14,96,765 52 Assessment, workshops, development of credit to SHGs, ME and Fish marketing training educational material, printing & societies) dissemination) Sub Total 15,95,055 56 Sub Total 18,000 1 C. Employment Generation & Skill Training E. Programme Management 1. Support for SHGs (support to SHGs – 17,388 1 1. Programme Management Unit (Vehicles, 25,739 1 mapping, training, kits, federation equipments, salaries, office expenses, development & NGO staff training) trainings) 2. Support for IGAs (IGA training, 36,970 1 2. District Offices (Vehicles, equipments, 1,05,156 4 facilitation for business upscaling, best salaries, office expenses, trainings) business practices, training in new 3. Project M&E (Vehicles, equipments, 18,277 1 technology, market linkage workshops) salaries, technical assistance) 3. Fish marketing Societies (Debt 3,16,800 11 Sub Total 1,49,172 5 redemption fund, support for marketing Total Base Cost 28,36,917 100 infrastructure facilities, repair centers,

beach landing centers, organization

expenses)

207 208 Component wise expenditure as on 31.07.2011 is as under: component, Vulnerability Reduction Fund of

(Rs. in lakhs) Rs.62.00 lakhs has been given to 1,297 From 2007 - 08 01.04.2011 – % of Total beneficiaries with community participation. One to 2010 - 11 31.07.2011 Total Name of the Project exp. Exp. Exp. Exp. to Fishermen Federation has been formed at Component outlay incurr Budget incur Budget incurr project ed Nagapattinam. Under coastal school red ed outlay Coastal Areas programme, IEC materials on Disaster Resource 4,116 3,341 2,645 1,379 310 2,955 72 Management Management and Environmental awareness Rural finance were printed and distributed to 30,215 coastal and Risk 9,83 446 62 487 17 79 8 Transfer school students at a cost of Rs.20.25 lakhs. Instruments Employment Generation From 01.04.2011 to 31.07.2011, 6,631 1,648 350 1,964 217 567 9 and Skill 128 Community Infrastructure works have training Community been completed at a cost of Rs.479.46 lakhs. based sea safety and 180 205 140 5 0 140 78 14,470 villagers have been trained on disaster insurance and its importance. 28 Livelihood management Programme Pilot Initiatives and 28 Sub sector based Micro 1,492 778 770 383 118 888 60 Management Enterprise Development have been initiated at Total 13,402 6,418 3,967 4,218 662 4,629 35 a cost of Rs.129 lakhs. One Fish Marketing Upto 2010-11, 22 Fish Marketing Society has been formed at Kancheepuram Societies (FMS) have been formed (6 in District. 238 fishermen have been redeemed Nagapattinam, 5 in Thiruvallur, 6 in from debt involving a debt redemption amount Kanyakumari, 4 in Cuddalore and 1 in of Rs.59.03 lakhs.

Villupuram districts) and debt relief of Rs.69.32 lakhs has been provided to 442 fishermen of 9 FMS. Under Rural Finance and Risk Transfer

209 210 11.3This Government proposes to • Vocational training to 2500 youth at a cost implement the following activities of Rs.250.00 lakhs will be provided. during 2011 – 12. • The Programme also looks into the aspects like Gender Focus, Poverty Focus, • 414 Community Infrastructure works and Knowledge Management besides Financial six artificial reefs at a cost of Management. Rs.120.00 lakhs would be taken up under • For the year 2011-12, a sum of Rs.42.17 Coastal Area Resource Management crores has been provided in the Budget • Venture Capital Fund will be transferred to Estimates. PLFs for promotion of Micro Enterprises

through bank linkage. 12. BUDGET FOR 2011-12 • Insurance activities and Vulnerability Reduction Fund activities at a cost of A sum of Rs.9,150.31 crores has been Rs.127.00 lakhs will be undertaken. provided in the Budget for 2011-12. Out of • 27 FMS with necessary marketing which, projected revenue expenditure is infrastructure will be formed and debt Rs.7,200.30 crores and capital expenditure is redemption assistance will be extended to Rs.1,950.01 crores. the fishermen of these societies, besides formation of one Fishermen Federation in 13. CONCLUSION Thiruvallur District at an estimate cost of Rs.15.00 lakhs. This Government is committed to the • One Out Board Motor repair centre and one cause of the people living in rural areas, Boat Yard at a cost of especially the rural poor. Strengthening of Rs.10.00 lakhs and Rs.25.00 lakhs Local Self Government is one of the prime respectively will be established in agenda of this Government. It was this Kanniyakumari district. Government which legislated the Tamil Nadu

211 212 Panchayats Act, in 1994. Many new schemes has proposed to introduce a new innovative were implemented by this Government during scheme – THAI - which is going to change the the previous period (2001-2006) for providing very face of rural development. basic infrastructure facilities in rural areas and After food and clothing, housing is the to strengthen the Self Help Group movement. most important human need. As already The thrust given for Rain Water Harvesting has mentioned, the unit cost provided for the resulted in improved ground water availability. Housing Scheme implemented by the previous Sanitation, which was one of the important Government was grossly inadequate. Hence, agenda of this Government, was completely this Government has proposed to launch a neglected in the past. Both “Rain water unique “Solar powered Green House Scheme” Harvesting” and “Sanitation” will be revived to address rural housing need in a realistic with renewed vigour. manner.

After 64 years of independence and Keeping in view the high cost of plethora of rural development programme, construction materials and wages to labourers, even today many remote Habitations are yet to this Government has enhanced the state get all basic infrastructural facilities. contribution under IAY scheme. Under the IAY Government is committed to improve the scheme, GOI share is Rs.33,750 and state Quality of Life in rural areas, by making share is 11,250 per unit. This Government available all basic amenities within each have now increased the allocation per house by habitation. But until the basic requirements of Rs.55,000 raising the unit cost to Rs.1.00 lakh. all the habitations are met, this ambitious objective of the Government will not be Under MGNREGS, though the notified fulfilled. Realising the importance of providing wage per person per day is Rs.119/-, the the basic facilities to all the habitations, this prevalent average wage rate in Tamil Nadu is Government for the first time in the country only about Rs.90/-. This Government will take

213 214 all possible efforts to enable the workers to get This Government is to come out with a their full wage of Rs.119/-. The “One separate Solar Energy Policy keeping in view Panchayat - One Work” norm will also be the growing energy needs. In tune with this relaxed so as to enable the workers from Policy, it is proposed to replace street lights in different habitations to take part in MGNREGS rural areas with Solar Powered LED lamps works. which will lessen the financial burden of the rural local bodies. Any progressive society should focus on it’s children and youth to ensure a Mahalir Thittam has played a pivotal role comprehensive and balanced growth. Keeping in bringing together poor and marginalized this in view, this Government proposes to women into the fold of Self Help Group introduce a new scheme for the benefit and movement and transformed their lives betterment of the students – The significantly through various measures Comprehensive School Infrastructure contributing towards their socio economic Development Scheme. empowerment. On the orders of the Hon’ble Chief Minister of Tamilnadu, transgenders who Participative development of basic were hitherto left out from the development infrastructural facilities paves the way for stream would also be brought under the fold of better ownership and maintenance of rural Mahalir Thittam by this Government from this assets. It was this Government which financial year. Self Help Groups today have introduced Self Sufficiency Scheme to moved from the status of being receivers to encourage community participation in the implementers of Government Schemes. This development process. To encourage more journey has been possible due to the participation, this Government has doubled the continuous efforts and concrete steps taken by allocation under Self Sufficiency Scheme. TNCDW in the form of capacity building,

providing revolving fund, enterprise

215 216 development training, skill training, economic dimensions of poverty through empowerment, assistance, marketing support etc. Federating job oriented employment opportunities, self the Self Help Groups at the panchayat, block employment, establishing credit linkages, and district level is the key to sustainability of market linkages, bridging information gap, the SHG movement. Keeping this in mind, this developing social capital, securing entitlements Government will give greater thrust to the through project intervention including special Panchayat Level Federations, strengthen and focus for the differently abled. The project has build their capacity to provide necessary made a mark in addressing poverty holistically handholding support to the member SHGs. and has transformed the lives of the poorest of Greater emphasis will be given by this the poor, the unreached and the voiceless. The Government to the promotion of products relentless efforts have yielded sustainable produced by SHGs through creation of a unique results which have encouraged this brand, appropriate packaging and adequate Government to embark on the expansion of facilities for marketing. The new TNSRLM this project. The focus of the Government from programme to be implemented shortly by this this year would be on strengthening the Government will further strengthen and sustain platforms for convergence at intra and inter all the initiatives taken up in the past for the village levels with the aim of sustaining the inclusive development and empowerment of gains made in livelihood interventions and the rural poor. socio-economic empowerment.

Tamil Nadu Government in 2005, in its This Government has embarked on an endeavour to alleviate poverty and improve the ambitious agenda to fulfill the basic standards of living of the rural poor has infrastructural requirements of all the initiated a concerted effort through “Pudhu habitations in Tamil Nadu including Housing for Vaazhvu” Project adopting the CDD approach. the rural poor and empowerment of women by The targeted households are addressed from all further strengthening the SHG movement. The

217 218 agenda may seem ambitious, but under the dynamic leadership and insightful guidance of our Hon’ble Chief Minister, this Government will take all efforts and emerge successful in fulfilling its objective of improving the quality of life of the rural people of Tamil Nadu.

K.P.MUNUSAMY, Minister for Municipal Administration & Rural Development

219